Exhibit 19-5

Refer to Exhibit 19-5. Assume that the seller of X increases the price from $1.50 to $2.00, and this results in an increase in total revenue. Which of the graphs could represent the demand curve for X?
A)(1)
B)(2)
C)(3)
D)There is not enough information provided to answer this question.

Question

Exhibit 19-5 ​

Refer to Exhibit 19-5. Assume that the seller of X increases the price from $1.50 to $2.00, and this results in an increase in total revenue. Which of the graphs could represent the demand curve for X?
A)(1) 
B)(2) 
C)(3) 
D)There is not enough information provided to answer this question.

Quizplus · Accepted Answer

Option B shows a downward sloping demand curve, and if total revenue increases when the price is increased, it suggests that the demand for the product is relatively inelastic. Option B shows a relatively inelastic demand curve.

Exhibit 19-5 ​ Refer to Exhibit 19-5. Assume That the Seller of X

Exhibit 19-5 Refer to Exhibit 19-5. Assume That the Seller of X