Figure 5-3Refer toFigure 5-3. At a price of $70 per unit, sellers' total revenue equals

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Figure 5-3​Refer toFigure 5-3. At a price of $70 per unit, sellers' total revenue equals

BlackTom AI · Accepted Answer

The problem asks for sellers' total revenue at a price of $70 per unit using Figure 5-3. First, I need to deduce the quantity demanded when the price is $70 from the demand curve shown. The graph indicates a straight-line demand curve starting at a price of 100 when quantity is 0 and decreasing linearly to a price near 0 when quantity is 50. This implies the line follows P = 100 − 2Q, since when Q = 50, P ≈ 0 and when Q = 0, P = 100.

Next, substitute P = 70 into the equation to solve for Q: 70 = 100 − 2Q, which gives 2Q = 30, so Q = 15.

Total revenue is price times quantity: TR = P × Q = 70 × 15 = 1,050.

Note: The provided data section for answer options is missing actual choices besides the given correct-looking option text, so I evaluated the price-quantity relationship directly from the graph to determine the revenue. If there were alternate options, I would compare this computed TR with each to identify the correct one, but with the curve-based calculation, the revenue at P = $70 is $1,050.

Figure 5-3Refer toFigure 5-3. At a price of $70 per unit, sellers' total revenue equals

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