Along a supply curve, a decrease in price will increase total revenue:
A)only if supply is elastic.
B)only if supply is inelastic.
C)only if supply is unit elastic.
D)under no circumstances.
E)in none of the above situations.

Question

Quizplus · Accepted Answer

Along a supply curve, a decrease in price will decrease total revenue, as total revenue is the product of price and quantity, and a lower price with the same or lower quantity supplied results in lower total revenue.

Along a Supply Curve, a Decrease in Price Will Increase