Figure 13-4A

-Figure 13-4A above shows that when the price for Red Baron frozen cheese pizzas moves from $8 to $6 per unit along the demand curve D₁,the profit
A)increases from 6 to 8 million units per year.
B)decreases from 8 to 6 million units per year.
C)stays the same.
D)increases from $2 to $3 per unit.
E)cannot be determined;demand curves do not show a relationship to profit.

Question

Figure 13-4A
 
-Figure 13-4A above shows that when the price for Red Baron frozen cheese pizzas moves from $8 to $6 per unit along the demand curve D₁,the profit
A)increases from 6 to 8 million units per year. 
B)decreases from 8 to 6 million units per year. 
C)stays the same. 
D)increases from $2 to $3 per unit. 
E)cannot be determined;demand curves do not show a relationship to profit.

Quizplus · Accepted Answer

The demand curve shows that as the price for Red Barron frozen cheese pizzas is lowered from $8 to $6 per pizza,the quantity demanded increases from 2 million to 3 million units per year.It does not show any relationship to profit.

Figure 13-4A -Figure 13-4A Above Shows That When the Price for Red