Suppose 1000 units of a good are sold at $10 a unit. If its price increases to $20 and total revenue increases to $20,000 and increases by $1000 for every dollar increase in price after that, we know that
A. demand is perfectly elastic.
B. the demand curve is vertical.
C. the demand curve is a rectangular hyperbola.
D. the demand curve is downward sloping and the firm is on the inelastic portion of the demand curve.
Answer: B
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