The following graph shown the demand curve for kumquats. You can use the red rec

Question

The following graph shown the demand curve for kumquats. You can use the red rectangle labeled Total Revenue (cross symbols) to compute total revenue at various prices along the demand curve. To see the area of the Total Revenue rectangle, scroll over the shaded area with your mouse. You will not be graded on where you place the rectangle. The price elasticity of demand between points D and C is approximately Suppose the price of kumquats is currently $2 per bushel. Because the price elasticity of demand between points B and A is ,a $1-per bushel rise in price will lead to in total revenue per month. In order for a price decrease to cause a decrease in total revenue, demand must be

Explanation / Answer

Demand elasticity = change in price / change in quantity = 1

unit elastic

no change

inelastic

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