Refer to the above graph. Consider a situation where price decreases from P₂ to P₁. In this price range, demand is relatively
A)inelastic because the loss in total revenue (areas D + G + I +
J)is greater than the gain in total revenue (areas C + F +
H).
B)elastic because the loss in total revenue (areas C + F +
H)is greater than the gain in total revenue (area
J).
C)elastic because the loss in total revenue (area
J)is less than the gain in total revenue (areas C + F +
H).
D)inelastic because the gain in total revenue (area
J)is less than the loss in total revenue (areas C + F +

Question

Refer to the above graph. Consider a situation where price decreases from P₂ to P₁. In this price range, demand is relatively
A)inelastic because the loss in total revenue (areas D + G + I + 
J)is greater than the gain in total revenue (areas C + F + 
H). 
B)elastic because the loss in total revenue (areas C + F + 
H)is greater than the gain in total revenue (area 
J). 
C)elastic because the loss in total revenue (area 
J)is less than the gain in total revenue (areas C + F + 
H). 
D)inelastic because the gain in total revenue (area 
J)is less than the loss in total revenue (areas C + F +

Quizplus · Accepted Answer

The Answer of  Refer to the above graph. Consider a situation where price decreases from P₂ to P₁. In this price range, demand is relatively
A)inelastic because the loss in total revenue (areas D + G + I + 
J)is greater than the gain in total revenue (areas C + F + 
H). 
B)elastic because the loss in total revenue (areas C + F + 
H)is greater than the gain in total revenue (area 
J). 
C)elastic because the loss in total revenue (area 
J)is less than the gain in total revenue (areas C + F + 
H). 
D)inelastic because the gain in total revenue (area 
J)is less than the loss in total revenue (areas C + F +

Refer to the Above Graph