Question

A firm raised the price of its product from $10 to $15 and as a result its sales fell from 200 units to 150 units. What happened to its average revenue and total revenue.

Answer 1

Average revenue has increased from $\$10$ to $\$15$

initial total revenue$=10\times 200=\$2000$

new total revenue$=15\times 150=\$2250$

Therefore, average revenue increased and total revenue increased.