on-a-graph-showing-total-revenue-if-the-area-representing-the-price-effect-is-eq

Question

On a graph showing total revenue, if the area representing the price effect is equal to the area representing the quantity effect after a price change, what does this indicate?

Accepted Answer

Total revenue remains unchanged, indicating unit elastic demand

Answer

Total revenue decreases, indicating inelastic demand

Answer

Total revenue increases, indicating elastic demand

Answer

Total revenue cannot be determined from the graph