Authors libby rittenberg 245

half of any linear demand curve, so total revenue moves in the direction of the quantity change Figure 5.3 Changes in Total Revenue and a Linear Demand Curve Moving from point A to point B implies a reduction in price and an increase in the quantity demanded Demand is elastic between these two points Total revenue, shown by the areas of the rectangles drawn from points A and B to the origin, rises When we move from point E to point F, which is in the inelastic region of the demand curve, total revenue falls A movement from point E to point F also shows a reduction in price and an increase in quantity demanded This time, however, we are in an inelastic region of the demand curve Total revenue now moves in the direction of the price change—it falls Notice that the rectangle drawn from point F is smaller in area than the rectangle drawn from point E, once again confirming our earlier calculation Attributed to Libby Rittenberg and Timothy Tregarthen Saylor URL: http://www.saylor.org/books/ Saylor.org 245