Question

A graph has quantity on the x-axis and price (dollars) on the y-axis. A demand line goes through P 1 (15,40), P 2 (30, 30), P 3 (45, 20).
The graph above shows one store’s projected demand curve for hand-held vacuum cleaners. If the demand at point P3 is fully satisfied, how much money will the store make by selling hand-held vacuum cleaners?
a.
$900
b.
$600
c.
$400
d.
$270



Please select the best answer from the choices provided


A
B
C
D

Answer 1

A

Revenue = price × quantity = $20 × 45 = $900, so choice (a) $900.