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 $3, total revenue is _____. If the price is $4, total revenue is _____.
A) $21; $24
B) $21; $18
C) $12; 28
D) $7; $13

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 $3, total revenue is _____. If the price is $4, total revenue is _____.
A) $21; $24 
B) $21; $18 
C) $12; 28 
D) $7; $13

Quizplus · Accepted Answer

Total revenue is equal to price times quantity. At a price of $3, the quantity demanded is 7, so total revenue is $3 x 7 = $21. At a price of $4, the quantity demanded is 6, so total revenue is $4 x 6 = $24.

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