Figure 5-16

-Refer to Figure 5-16.If,holding the supply curve fixed,there were an increase in demand that caused the equilibrium price to increase from $6 to $8,then sellers' total revenue would
A) increase.
B) decrease.
C) remain unchanged.
D) The effect on total revenue cannot be determined from the given information.

Question

Figure 5-16
 
-Refer to Figure 5-16.If,holding the supply curve fixed,there were an increase in demand that caused the equilibrium price to increase from $6 to $8,then sellers' total revenue would
A) increase. 
B) decrease. 
C) remain unchanged. 
D) The effect on total revenue cannot be determined from the given information.

Quizplus · Accepted Answer

An increase in the equilibrium price from $6 to $8 due to an increase in demand would result in an increase in sellers' total revenue. This is because sellers receive a higher price for each unit sold and therefore earn more revenue overall.

Figure 5-16 -Refer to Figure 5-16.If,holding the Supply Curve Fixed,there Were an Curve