Refer to the Following Figure

question 44

Multiple Choice

Refer to the following figure:

The above graph shows the demand and cost conditions facing a price-setting firm.
-When output is 50 units, what will happen to total revenue if the firm sells another unit of output?

• A) Total revenue will increase $13.50.
• B) Total revenue will increase $11.00.
• C) Total revenue will increase $9.00.
• D) Total revenue will increase $6.00.
• E) none of the above

---

Definitions:

Law Of Demand

The principle that there is an inverse relationship between the price of a good or service and the quantity of it that consumers are willing to purchase.

Price Elasticity

A parameter that indicates the extent to which demand for a good is influenced by its price changes.

Demand Schedule

A table showing the quantity of a good or service that consumers are willing to buy at various prices.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers.