Economics 9708 · AS & A Level · Revenue

Revenue — practice question

The diagram illustrates the impact of a movement in the demand curve from $D_1$ to $D_2$ for a profit maximising firm. What change has occurred to the firm's total revenue and the deadweight welfare loss?

  • Atotal revenue decreases to OGLQ; deadweight welfare loss decreases by KLN
  • Btotal revenue decreases to OGLQ; deadweight welfare loss increases by KLN
  • Ctotal revenue increases to OHKQ; deadweight welfare loss decreases by KLN
  • Dtotal revenue increases to OHKQ; deadweight welfare loss increases by KLN

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