Answer to Question #231903 in Economics of Enterprise for Princess

Question #231903

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.


1
Expert's answer
2021-09-02T12:28:58-0400

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.


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