How does total revenue change as one moves down a linear demand curve
A)It increases.
B)It decreases.
C)It first increases then decreases.
D)It first decreases then increases.

Question

Quizplus · Accepted Answer

Total revenue first increases as we move down a linear demand curve due to the increase in quantity demanded, but then decreases as the decrease in price reduces the revenue earned per unit. The peak revenue point is at the midpoint of the demand curve.

How Does Total Revenue Change as One Moves Down a Linear