(Figure: Demand for High End Cell Phones) Use Figure: The Demand for High End Cell Phones. Total revenue at point S equals the:

A)distance 0P.
B)distance MS.
C)area 0TUM.
D)area 0PSM.

Question

(Figure: Demand for High End Cell Phones) Use Figure: The Demand for High End Cell Phones. Total revenue at point S equals the:

A)distance 0P. 
B)distance MS. 
C)area 0TUM. 
D)area 0PSM.

Quizplus · Accepted Answer

Total revenue is equal to price multiplied by quantity demanded. At point S, the price is OP and the quantity demanded is SM, so the total revenue is the area of rectangle 0PSM, which is represented by choice D.

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