Refer to Figure 5-1. With reference to Graph A, at a price of \$10, total revenue equals:

• A. The slope of the demand curve at \$10
• B. The area under the demand curve up to \$10
• C. Quantity demanded at \$10 multiplied by \$10
• D. The difference between quantity supplied and quantity demanded at \$10

Answer: (C)

Verified step by step guidance

1. Identify the quantity demanded at the price of \$10 from Graph A. This is the quantity on the horizontal axis corresponding to the price level of \$10 on the vertical axis.
2. Recall that total revenue (TR) is calculated as the product of the price (P) and the quantity demanded (Q). The formula is: \(TR = P \times Q\).
3. Using the quantity demanded at \$10, multiply this quantity by the price \$10 to find the total revenue at that price.
4. Understand that the slope of the demand curve at \$10 represents the rate of change of quantity demanded with respect to price, not total revenue.
5. Recognize that the area under the demand curve up to \$10 does not represent total revenue; total revenue is a rectangle defined by price and quantity demanded, not the area under the curve.