-The figure illustrates the demand for eggs. At what price will egg sellers maximize their total revenue?
A) above $0.75 a dozen
B) $0.75 a dozen
C) less than $0.75 a dozen
D) $1.50 a dozen

Question

-The figure illustrates the demand for eggs. At what price will egg sellers maximize their total revenue?
A) above $0.75 a dozen 
B) $0.75 a dozen 
C) less than $0.75 a dozen 
D) $1.50 a dozen

Quizplus · Accepted Answer

Egg sellers maximize total revenue at the price where demand is unit elastic. This typically occurs at the midpoint of a linear demand curve, which is often given as $0.75 a dozen in such scenarios.

-The Figure Illustrates the Demand for Eggs