(Figure: Price Decrease and Elasticity) Refer to the figure. If price decreases from $20 to $10, total revenue will: Figure: Price Decrease and Elasticity
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: Figure: Price Decrease and Elasticity 
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: Figure: Price Decrease and Elasticity 
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