Exhibit 19-5

-Refer to Exhibit 19-5. Assume that the seller of X increases the price from $1.50 to $2.00, and this results in an increase in total revenue. Which of the graphs represents the demand curve for X?
A)(1)
B)(2)
C)(3)
D)all of the above

Question

Exhibit 19-5
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-Refer to Exhibit 19-5. Assume that the seller of X increases the price from $1.50 to $2.00, and this results in an increase in total revenue. Which of the graphs represents the demand curve for X?
A)(1) 
B)(2) 
C)(3) 
D)all of the above

Quizplus · Accepted Answer

An increase in price leading to an increase in total revenue indicates that the demand is inelastic. Graph (2) represents an inelastic demand curve.

Exhibit 19-5 ​

Exhibit 19-5