Figure 5-9 -Refer to Figure 5-9.If Price Increases from $10 to $15,total

question 141

Multiple Choice

Figure 5-9

-Refer to Figure 5-9.If price increases from $10 to $15,total revenue will

• A) increase by $20, so demand must be inelastic in this price range.
• B) increase by $5, so demand must be inelastic in this price range.
• C) decrease by $20, so demand must be elastic in this price range.
• D) decrease by $10, so demand must be elastic in this price range.

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Definitions:

Curvilinear Cost

A cost behavior pattern where costs increase with activity, but not at a constant rate, often depicted as a curved line on a graph.

Variable Cost

Costs that change in proportion to the level of activity or volume of production in a company.