Figure 5-2

-Refer to Figure 5-2.Sellers' total revenue would increase if the price
A)increased from $4 to $6.
B)increased from $16 to $18.
C)decreased from $8 to $6.
D)All of the above are correct.

Question

Figure 5-2
 
-Refer to Figure 5-2.Sellers' total revenue would increase if the price
A)increased from $4 to $6. 
B)increased from $16 to $18. 
C)decreased from $8 to $6. 
D)All of the above are correct.

Quizplus · Accepted Answer

According to the graph, sellers' total revenue is maximized at a price of $6, where the quantity demanded is 12. Therefore, increasing the price from $4 to $6 would increase total revenue. However, increasing the price from $16 to $18 or decreasing the price from $8 to $6 would result in a decrease in total revenue, as the quantity demanded would decrease at those price points.

Figure 5-2 -Refer to Figure 5-2.Sellers' Total Revenue Would Increase If the Would