Moving up a linear demand curve,what happens to total revenue
A)It increases, then decreases.
B)It decreases, then increases.
C)It increases.
D)It decreases.

Question

Quizplus · Accepted Answer

As you move up a linear demand curve, price increases and quantity demanded decreases. Initially, total revenue increases because the price effect dominates, but eventually, it decreases as the quantity effect dominates.

Moving Up a Linear Demand Curve,what Happens to Total Revenue