Exhibit 5.4

-Refer to Exhibit 5.4,which shows a downward-sloping linear demand curve.Which of the following is true between points g and h?
A)Total revenue remains constant at $180.
B)Total revenue falls by $12.
C)Total revenue falls by $60.
D)Total revenue falls by $180.
E)Total revenue increases by $300.

Question

Exhibit 5.4
 
-Refer to Exhibit 5.4,which shows a downward-sloping linear demand curve.Which of the following is true between points g and h?
A)Total revenue remains constant at $180. 
B)Total revenue falls by $12. 
C)Total revenue falls by $60. 
D)Total revenue falls by $180. 
E)Total revenue increases by $300.

Quizplus · Accepted Answer

Between points g and h on a downward-sloping linear demand curve, the total revenue falls by $60. This is because the decrease in price leads to a proportionally smaller increase in quantity demanded, resulting in a net decrease in total revenue.

Exhibit 5.4 -Refer to Exhibit 5.4,which Shows a Downward-Sloping Linear Demand Curve.Which