A-LevelEconomicsThe price system and the microeconomy9708/12 · Feb/Mar 2016 · Q81 Mark
In the diagram the rectangular hyperbola, DD, represents a firm's demand curve.
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
AAn increase in the quantity supplied causes a fall in total revenue.
BThe price elasticity of demand decreases as we move down the demand curve.
CThe sale of an extra unit gains no extra revenue.
DTotal expenditure on the commodity decreases as the price falls.
✓ Correct answer
C: The sale of an extra unit gains no extra revenue.
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