Consider the Demand Curve Above

question 196

Multiple Choice

Consider the demand curve above. If area 0ABC is smaller than area 0DEF, it suggests that if the price increases from OD to OA, then total revenues of sellers will

• A)increase.
• B)decrease.
• C)remain constant.
• D)equal zero.

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Definitions:

Wage Rate

The amount of money paid to workers for their services, usually expressed per hour or per unit of work done.

Competitive Employer

A firm that operates in a competitive labor market, setting wages based on supply and demand rather than having the power to influence market conditions.

Wage Rate

The amount of money paid to an employee per unit of time or per task performed, often expressed as an hourly or piece rate.

Total Product

The overall quantity of output that a firm produces, usually within a given period.