What happens to total revenue for a product that has many substitutes when the price is increased?
A) Total revenue increases.
B) Total revenue decreases.
C) Total revenue stays the same.
D) The impact on total revenue cannot be determined from the information provided.

Question

Quizplus · Accepted Answer

When a product has many substitutes, increasing its price typically leads to a decrease in quantity demanded as consumers switch to the substitutes. This decrease in quantity demanded usually results in a decrease in total revenue.

What Happens to Total Revenue for a Product That Has