-The above figure shows the demand curve for crude oil. Suppose the price is currently $15. A supply shock suddenly raises the price to $17. What happens with the crude oil sales revenue?
A)Crude oil sales revenue stays the same.
B)Crude oil sales revenue slightly declines.
C)Crude oil sales revenue increases.
D)Crude oil sales revenue exhibits a steep decline.

Question

-The above figure shows the demand curve for crude oil. Suppose the price is currently $15. A supply shock suddenly raises the price to $17. What happens with the crude oil sales revenue?
A)Crude oil sales revenue stays the same. 
B)Crude oil sales revenue slightly declines. 
C)Crude oil sales revenue increases. 
D)Crude oil sales revenue exhibits a steep decline.

Quizplus · Accepted Answer

When the price of crude oil increases from $15 to $17, the sales revenue increases if the demand is inelastic, meaning the percentage decrease in quantity demanded is less than the percentage increase in price.

-The Above Figure Shows the Demand Curve for Crude Oil