(Figure: Demand for High End Cell Phones) Use Figure: The Demand for High End Cell Phones. The change in total revenue resulting from a change in price from P to T suggests that demand is:

A)inelastic.
B)elastic.
C)perfectly elastic.
D)unit-elastic.

Question

(Figure: Demand for High End Cell Phones) Use Figure: The Demand for High End Cell Phones. The change in total revenue resulting from a change in price from P to T suggests that demand is:

A)inelastic. 
B)elastic. 
C)perfectly elastic. 
D)unit-elastic.

Quizplus · Accepted Answer

The change in total revenue resulting from a change in price from P to T is a decrease in total revenue. This suggests that demand is elastic, meaning that consumers are very responsive to changes in price.

(Figure: Demand for High End Cell Phones) Use Figure: the Demand