Figure: Price Decrease and Elasticity Refer to the figure. If price decreases from $20 to $10, total revenue will:
A) decrease by $1,500, so the demand curve is inelastic.
B) decrease by $2,500, so the demand curve is inelastic.
C) increase by $1,500, so the demand curve is elastic.
D) increase by $2,500, so the demand curve is elastic.

Question

Figure: Price Decrease and Elasticity  Refer to the figure. If price decreases from $20 to $10, total revenue will:
A) decrease by $1,500, so the demand curve is inelastic. 
B) decrease by $2,500, so the demand curve is inelastic. 
C) increase by $1,500, so the demand curve is elastic. 
D) increase by $2,500, so the demand curve is elastic.

Quizplus · Accepted Answer

The Answer of Figure: Price Decrease and Elasticity  Refer to the figure. If price decreases from $20 to $10, total revenue will:
A) decrease by $1,500, so the demand curve is inelastic. 
B) decrease by $2,500, so the demand curve is inelastic. 
C) increase by $1,500, so the demand curve is elastic. 
D) increase by $2,500, so the demand curve is elastic.

Figure: Price Decrease and Elasticity Refer to the Figure