Choose the correct statementA. Total revenue from the sale of a good equals the price of the good multiplied by the quantity sold. B. A rise in price increases total revenue. C. A rise in the price decreases total revenue. D. The change in total revenue that arises from a price change is independent of the price elasticity of demand.

Question

Business

Rosemary Parsons

17 November, 07:11

Choose the correct statementA. Total revenue from the sale of a good equals the price of the good multiplied by the quantity sold. B. A rise in price increases total revenue. C. A rise in the price decreases total revenue. D. The change in total revenue that arises from a price change is independent of the price elasticity of demand.

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Answers (1)

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Clayton Booker · Answer 1

A. Total revenue from the sale of a good equals the price of the good multiplied by the quantity sold.

Explanation:

As we know that the total revenues is the revenues which are earned by the firm after selling the products to the customers

And, the total revenues is computed by multiplying the price of the goods with the number of quantity sold

In mathematically,

Total revenues = Price of the goods * Number of quantity sold

Hence, the first option is correct