Final answer:
Total revenue is calculated by multiplying the price of a product by the quantity sold, so the correct response to the question is 'price; quantity'.
Step-by-step explanation:
Total revenue is a crucial concept in business and economics that represents the income a firm generates from selling its products. It is a simple product of two variables: the price at which the goods or services are sold, and the quantity of these goods or services that are sold. Therefore, total revenue equals price times quantity.
In the context of a multiple-choice question provided, the correct answer would be 'price; quantity'. Unlike average revenue or demand, which are related but distinct concepts, the price of a product times the number of units sold directly calculates the total revenue.
For example, if a company sells 100 units of a product priced at $10 each, the total revenue would be calculated as $10 (price) × 100 (quantity), which equals $1,000. This kind of calculation helps businesses understand their sales performance and make informed decisions about pricing, production levels, and market strategy.