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Figure: The Demand Curve
-(Figure: The Demand Curve) Look at the figure The Demand Curve. If the price is $8, total revenue is _____. If the price is $7, total revenue is _____.
A) $24; $16
B) $14; $21
C) $16; $21
D) $10; $10

Question

Use the following to answer questions:
Figure: The Demand Curve 
-(Figure: The Demand Curve) Look at the figure The Demand Curve. If the price is $8, total revenue is _____. If the price is $7, total revenue is _____.
A) $24; $16 
B) $14; $21 
C) $16; $21 
D) $10; $10

Quizplus · Accepted Answer

Total revenue is calculated by multiplying the price by the quantity demanded. If the price is $8, the quantity demanded is 2 units, so total revenue is $8 * 2 = $16. If the price is $7, the quantity demanded is 3 units, so total revenue is $7 * 3 = $21.

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