Figure 54 Shows a Downward-Sloping Linear Demand Curve

question 51

Multiple Choice

Figure 5.4 shows a downward-sloping linear demand curve. Which of the following is true between points g and h in the figure below?​ ​
Figure 5.4

• A)Total revenue remains constant at $180
• B)Total revenue falls by $12.
• C)Total revenue falls by $60.
• D)Total revenue falls by $180.
• E)Total revenue increases by $300.

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Definitions:

Binding Price Ceiling

A maximum price set by the government below the equilibrium price, leading to shortages as the demand exceeds supply.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a given time period.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price within a specified time period.

Long Lines

Typically a result of excessive demand or insufficient supply, creating a situation where people have to wait for a long time to avail of a service or purchase a product.