Figure 5-4 -Refer to Figure 5-4. If Rectangle D Is Larger Than

Multiple Choice

Figure 5-4

-Refer to Figure 5-4. If rectangle D is larger than rectangle A, then which of the following is not correct?

A) Demand is elastic between prices P₁ and P₂.
B) A decrease in price from P₂ to P₁ will cause an increase in total revenue.
C) The magnitude of the percentage change in price between P₁ and P₂ is smaller than the magnitude of the corresponding percent change in quantity demanded.
D) An increase in price from P₁ to P₂ will cause an increase in total revenue.