-In the above figure, at point b on the demand curve, a price cut of one dollar will
A) increase total revenue.
B) decrease total revenue.
C) leave total revenue unchanged.
D) have an indeterminate effect on total revenue.

Question

-In the above figure, at point b on the demand curve, a price cut of one dollar will
A) increase total revenue. 
B) decrease total revenue. 
C) leave total revenue unchanged. 
D) have an indeterminate effect on total revenue.

Quizplus · Accepted Answer

At point b on the demand curve, if a price cut increases total revenue, it indicates that the demand is elastic at that point.

-In the Above Figure, at Point B on the Demand