Exhibit 23-5

-Refer to Exhibit 23-5. What area represents lost revenue when price goes from P₂ to P₁?

Name: Exhibit 23-5 -Refer to Exhibit 23-5. What area represents lost revenue when price goes from P 2 to P 1 ?
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Question

Exhibit 23-5 -Refer to Exhibit 23-5. What area represents lost revenue when price goes from P₂ to P₁?

Quizplus · Accepted Answer

The lost revenue when price decreases is represented by the area between the initial and new price levels, over the quantity sold at the new price, which is described by the rectangle formed by the points P₁, P₂, B, and C.

Exhibit 23-5 -Refer to Exhibit 23-5. What Area Represents Lost Revenue When