In any market, total revenue is the price:
A) divided by the price elasticity of demand
B) multiplied by the quantity
C) plus the quantity
D) divided by the quantity

Question

Quizplus · Accepted Answer

Total revenue is calculated as the price multiplied by the quantity sold. This formula reflects the fact that as the price increases, the quantity sold generally decreases, resulting in an inverse relationship between price and quantity, and a direct relationship between price and total revenue. Therefore, multiplying the price by the quantity gives you the total revenue in any market.

In Any Market, Total Revenue Is the Price