6. What is total revenue and how do you calculate it? a. When price drops and the quantity of demand increases, there are two reasons that revenue changes. Some goods are now produced that weren't previously produced and those goods that were produced before, are now being sold at a lower price. How do you know if revenue will go up or down?

6. What is total revenue and how do you calculate it? a. When price drops and the quantity of demand increases, there are two reasons that revenue changes. Some goods are now produced that weren't previously produced and those goods that were produced before, are now being sold at a lower price. How do you know if revenue will go up or down?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 4PA: A price change causes the quantity demanded of a good to decrease by 30 percent, while the total...

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