-In the Above Figure, Along Which Range Would Total Revenue

question 124

Multiple Choice

-In the above figure, along which range would total revenue remain unchanged by raising prices?

• A) Between point a and point b
• B) Between point c and point d
• C) Between point d and point e
• D) Below point e and above point a.

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Definitions:

Substitute Goods

Products or services that can be used in place of one another, fulfilling the same needs or wants of the consumer.

Normal Goods

Goods for which demand increases as the income of the consumer increases, exhibiting a direct relationship between income and demand.

Complementary Goods

Goods that are typically consumed together, such that the demand for one increases when the price of the other decreases.

Substitute Goods

Goods that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.