The local electricity utility wants to increase total revenue.Their economist suggests that they

Question

Quizplus · Accepted Answer

To increase total revenue, the local electricity utility could raise the price of electricity. This would increase the amount of revenue the utility receives from each unit of electricity sold. However, it may also result in a decrease in the quantity of electricity demanded by consumers, so the utility would need to make sure that the price increase is not so high as to cause a significant decrease in demand.

The Local Electricity Utility Wants to Increase Total Revenue