Suppose the price of a bus ticket rises from $2.75 to $3 and the number of tickets sold falls from 10 000 to 8500, the total revenue test:
A) shows a decrease in total revenue.
B) cannot be calculated.
C) shows no change in total revenue.
D) shows an increase in total revenue.

Question

Quizplus · Accepted Answer

The total revenue before the price increase is $2.75 * 10,000 = $27,500. After the price increase, the total revenue is $3 * 8,500 = $25,500. Comparing the two, there's an increase in total revenue from $27,500 to $25,500, indicating that choice D is correct.

Suppose the Price of a Bus Ticket Rises from $2