Question

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 1

Total revenue at the lower price of $9.50 is calculated by multiplying the new price with the new quantity demanded, thus resulting in a total revenue of $1,045.

Step-by-step explanation:

The student is asking how to calculate the total revenue at the lower price after a change in price and quantity demanded. In this situation, the price of an item falls from $10.00 to $9.50, and the quantity demanded increases from 100 units to 110 units. To calculate the total revenue at the new price, you multiply the price per unit by the number of units sold. Therefore, the total revenue at the lower price would be $9.50 (new price) multiplied by 110 units (new quantity demanded), which equals $1,045.

Answer 2

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

Step-by-step 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