If my dentist decides to lower the price of teeth whitening treatments, total sales (revenues) for treatments will go up if:

Question

Quizplus · Accepted Answer

Recognizing that TR = P * Q and as P??Q?, the TR? occurs only if quantity effect (upward pressure on TR from Q?) is larger than the price effect (the downward pressure on TR from P?). I.e. TR?= P??Q?. This implies that demand should be relatively responsive to a change in price: i.e. price elasticity is greater than one.

If My Dentist Decides to Lower the Price of Teeth