Question

If demand shifts right and price increases, then the total revenue to the group of sellers increases for both elastic and inelastic supply curves. True or false?

Answer 1

Yes that is true because revenue= price multiply by quantity so if price increases then revenue will increase. the total revenue for sellers will be greater in elastic curves because the quantity supplied is increased by a larger amount than the increase in price and they wil earn more revenue and vice versa will inelastic supply curve.