If the price of a widget increases from $10 to $20 which of the following would be the expected result
A)Total revenue will increase
B)Total revenue will decrease
C)Total revenue will initially increase but return to previous level
D)Total revenue will not be affected

Question

Quizplus · Accepted Answer

The expected result of a price increase, assuming demand remains constant or doesn't decrease proportionally, is an increase in total revenue. This is because total revenue is calculated as price multiplied by quantity sold, and an increase in price, all else being equal, would lead to higher revenue.

If the Price of a Widget Increases from $10 to $20