Graph 5-4
-Refer to Graph 5-4.Total revenue at P₂ would be represented by area(s):

Question

Quizplus · Accepted Answer

Total revenue is calculated by multiplying the price by the quantity sold. At price P₂, the quantity sold extends to the end of area B, starting from the origin. Therefore, total revenue at P₂ includes both areas A (the rectangle from the origin to the end of A on the quantity axis and up to P₂ on the price axis) and B (the rectangle directly above A, extending from the end of A to the end of B on the quantity axis and up to P₂ on the price axis).

Graph 5-4 -Refer to Graph 5-4.Total Revenue at P₂ Would Be Represented