Question

Suppose that the quantity of umbrellas demanded at a price of $6 is 3,000 units. The company's total revenue is $______________.

a) 18,000
b) 12,000
c) 20,000
d) 15,000

Answer 1

The total revenue from selling 3,000 umbrellas at a price of $6 each is $18,000.

Step-by-step explanation:

If the quantity of umbrellas demanded at a price of $6 is 3,000 units, then to find the total revenue, we would multiply the price per unit by the number of units. Total revenue is calculated as:

Total Revenue = Price per Unit × Quantity Sold

Here, Price per Unit = $6 and Quantity Sold = 3,000 units. Therefore, total revenue would be:

Total Revenue = $6 × 3,000 = $18,000.

Thus, the company's total revenue is $18,000 when selling 3,000 umbrellas at $6 each.