Figure 5.5 shows the total revenue curve for a firm. Which of the following is not true in the range of the total revenue curve labeled A?
Figure 5.5

A)Demand is inelastic.
B)Total revenue is increasing.
C)Total revenue is positive.
D)Demand is elastic.
E)Demand elasticity decreases as total revenue increases.

Question

Figure 5.5 shows the total revenue curve for a firm. Which of the following is not true in the range of the total revenue curve labeled A?​ ​
Figure 5.5
​

A)Demand is inelastic. 
B)Total revenue is increasing. 
C)Total revenue is positive. 
D)Demand is elastic. 
E)Demand elasticity decreases as total revenue increases.

Quizplus · Accepted Answer

The range labeled A on the total revenue curve shows a negative slope, implying that demand is elastic. Therefore, option D is not true as it implies that demand is inelastic.

Figure 55 Shows the Total Revenue Curve for a Firm