Price (dollars) 8 7 'D 6 5 10 15 20 25 30 35 Quantity (units per year) 9,

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter14A: The Practice Of Revenue Management
Section: Chapter Questions
Problem 1E
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100%
Price (dollars)
8
7
D.
5
10
15
20
25
30
35
Quantity (units per year)
In the figure above, when the price falls from $8 to $7, total revenue
A) decreases from $210 to $120 so demand is inelastic.
B) increases from $120 to $210 so demand is inelastic.
C) decreases from $210 to $120 so demand is elastic.
D) increases from $120 to $210 so demand is elastic.
6
Transcribed Image Text:Price (dollars) 8 7 D. 5 10 15 20 25 30 35 Quantity (units per year) In the figure above, when the price falls from $8 to $7, total revenue A) decreases from $210 to $120 so demand is inelastic. B) increases from $120 to $210 so demand is inelastic. C) decreases from $210 to $120 so demand is elastic. D) increases from $120 to $210 so demand is elastic. 6
Expert Solution
Step 1: Introduction

You must track your overall revenue if you want to know how much money your company makes from all of the products and services it sells.

Total revenue indicates how much money your company makes before spending. And, because revenue is so important for growth, it's a measure that every business should keep track of.

We'll go over all you need to know about total income in this article.

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