(Figure: Price Increase and Elasticity) Refer to the figure. If price increases from $10 to $20, total revenue will:
A) increase by $800 so the demand curve must be inelastic.
B) increase by $100 so the demand curve must be inelastic.
C) decrease by $800 so the demand curve must be elastic.
D) decrease by $100 so the demand curve must be elastic.

Question

(Figure: Price Increase and Elasticity) Refer to the figure. If price increases from $10 to $20, total revenue will: 
A) increase by $800 so the demand curve must be inelastic. 
B) increase by $100 so the demand curve must be inelastic. 
C) decrease by $800 so the demand curve must be elastic. 
D) decrease by $100 so the demand curve must be elastic.

Quizplus · Accepted Answer

The Answer of (Figure: Price Increase and Elasticity) Refer to the figure. If price increases from $10 to $20, total revenue will: 
A) increase by $800 so the demand curve must be inelastic. 
B) increase by $100 so the demand curve must be inelastic. 
C) decrease by $800 so the demand curve must be elastic. 
D) decrease by $100 so the demand curve must be elastic.

(Figure: Price Increase and Elasticity) Refer to the Figure