Figure 5-10

-Refer to Figure 5-10.If,holding the supply curve fixed,there were an increase in demand that caused the equilibrium price to increase from $6 to $8,then sellers' total revenue would

Question

Figure 5-10
 
-Refer to Figure 5-10.If,holding the supply curve fixed,there were an increase in demand that caused the equilibrium price to increase from $6 to $8,then sellers' total revenue would

Quizplus · Accepted Answer

If the equilibrium price increases from $6 to $8, it means there is an increase in demand which has caused a shortage. As a result, the sellers can increase the price to $8 and still sell all their goods. This means that they can increase the quantity sold and the price they receive for each unit. Therefore, the total revenue of the sellers will increase.

Figure 5-10 -Refer to Figure 5-10.If,holding the Supply Curve Fixed,there Were an Curve