Figure 5.4 shows a downward-sloping linear demand curve. Between points b and c in the figure below, price decreases by $1, quantity demanded increases by 10, _____.
Figure 5.4

A)total revenue decreases by $1, and demand is elastic
B)total revenue decreases by $1, and demand is inelastic
C)total revenue increases by $40, and demand is elastic
D)total revenue increases by $40, and demand is inelastic
E)and total revenue increases by $80

Question

Figure 5.4 shows a downward-sloping linear demand curve. Between points b and c in the figure below, price decreases by $1, quantity demanded increases by 10, _____.​ ​
Figure 5.4

A)total revenue decreases by $1, and demand is elastic 
B)total revenue decreases by $1, and demand is inelastic 
C)total revenue increases by $40, and demand is elastic 
D)total revenue increases by $40, and demand is inelastic 
E)and total revenue increases by $80

Quizplus · Accepted Answer

The Answer of Figure 5.4 shows a downward-sloping linear demand curve. Between points b and c in the figure below, price decreases by $1, quantity demanded increases by 10, _____.​ ​
Figure 5.4

A)total revenue decreases by $1, and demand is elastic 
B)total revenue decreases by $1, and demand is inelastic 
C)total revenue increases by $40, and demand is elastic 
D)total revenue increases by $40, and demand is inelastic 
E)and total revenue increases by $80

Figure 54 Shows a Downward-Sloping Linear Demand Curve