deleoncristhal
Answered

The price falls from $10.00 to $9.50, and the quantity demanded rises from 100 units
to 110 units. What does total revenue equal at the lower price?

Answer :

The revenue when the price falls to $9.5 is $1045

Explanation:

Decrease in price = $10 to $9.5

RIse in demand = 100 to 110

Total revenue = ?

Income when the price was $10 and the demand was 100

Revenue = 100 X $10

               = $1000

Income when the price was $10 and the demand was 110

Revenue = 110 X $10

               = $1100

Revenue when the price was $9.5 and the demand was 110

Revenue = 110 X $9.5

               = $1045

The revenue when the price falls to $9.5 is $1045

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