Exhibit 5-7 Demand curve for concert tickets

-In Exhibit 5-7, if promoters raise their prices from $10 to $40 per ticket, then their total revenue will:
A) increase.
B) decrease.
C) remain unchanged.
D) react unpredictably.

Question

Exhibit 5-7 Demand curve for concert tickets
​ 
-In Exhibit 5-7, if promoters raise their prices from $10 to $40 per ticket, then their total revenue will:
A) increase. 
B) decrease. 
C) remain unchanged. 
D) react unpredictably.

Quizplus · Accepted Answer

Total revenue will increase because the increase in price will outweigh the decrease in quantity demanded.

Exhibit 5-7 Demand Curve for Concert Tickets