-The figure above illustrates a linear demand curve. If the price falls from $8 to $6
A) total revenue increases.
B) total revenue decreases.
C) total revenue remains unchanged.
D) the quantity demanded increases by less than 20 percent.

Question

-The figure above illustrates a linear demand curve. If the price falls from $8 to $6
A) total revenue increases. 
B) total revenue decreases. 
C) total revenue remains unchanged. 
D) the quantity demanded increases by less than 20 percent.

Quizplus · Accepted Answer

When the price falls from $8 to $6 on a linear demand curve, the quantity demanded increases, leading to an increase in total revenue, assuming the demand is elastic in this range.

-The Figure Above Illustrates a Linear Demand Curve