Exhibit 5.3

-Refer to Exhibit 5.3,which shows a linear demand curve.As you move from point A to point B along the demand curve,total revenue _____ and the demand is _____.
A)stays the same; unitary
B)decreases; inelastic
C)increases; elastic
D)decreases; elastic
E)increases, inelastic

Question

Exhibit 5.3
 
-Refer to Exhibit 5.3,which shows a linear demand curve.As you move from point A to point B along the demand curve,total revenue _____ and the demand is _____.
A)stays the same; unitary 
B)decreases; inelastic 
C)increases; elastic 
D)decreases; elastic 
E)increases, inelastic

Quizplus · Accepted Answer

As you move from point A to point B along a linear demand curve, if total revenue increases, it indicates that the demand is elastic in that segment.

Exhibit 5.3 -Refer to Exhibit 5.3,which Shows a Linear Demand Curve.As You