(Figure: Revenue Schedule) Demand and Marginal Schedule
In the figure, marginal revenue is decreasing while total revenue is increasing. This indicates that the demand curve is _____ sloping and the marginal revenue curve is _____ the demand curve.
$\begin{array}{|l|l|l|}
\hline \text { Price } & \text { Quantity } & \begin{array}{l}
\text { Total } \
\text { Revenue }
\end{array} \
\hline \$ 9 & 0 & 0 \
\hline 8 & 1 & \$ 8 \
\hline 7 & 2 & 14 \
\hline 6 & 3 & 18 \
\hline 5 & 4 & 20 \
\hline
\end{array}$
A) downward; above
B) upward; above
C) downward; below
D) upward; below

Question

(Figure: Revenue Schedule) Demand and Marginal Schedule
In the figure, marginal revenue is decreasing while total revenue is increasing. This indicates that the demand curve is _____ sloping and the marginal revenue curve is _____ the demand curve.
 $\begin{array}{|l|l|l|}
\hline \text { Price } & \text { Quantity } & \begin{array}{l}
\text { Total } \
\text { Revenue }
\end{array} \
\hline \$ 9 & 0 & 0 \
\hline 8 & 1 & \$ 8 \
\hline 7 & 2 & 14 \
\hline 6 & 3 & 18 \
\hline 5 & 4 & 20 \
\hline
\end{array}$
A) downward; above
B) upward; above
C) downward; below
D) upward; below

Quizplus · Accepted Answer

The demand curve is downward sloping because as price decreases, quantity demanded increases. The marginal revenue curve is below the demand curve because marginal revenue decreases at a faster rate than price, indicating a downward sloping demand curve with diminishing marginal revenue.

(Figure: Revenue Schedule) Demand and Marginal Schedule in the Figure

(Figure: Revenue Schedule) Demand and Marginal Schedule
in the Figure