When Nablom's Bakery raised the price of its breads by 10 percent, the quantity demanded fell by 15 percent.What was the effect on sales revenue?
A)Sales revenue increased.
B)Sales revenue remained unchanged.
C)Sales revenue decreased.
D)It cannot be determined without information on prices.

Question

Quizplus · Accepted Answer

When the price of breads was increased, the quantity demanded decreased by a greater percentage, 15%. This means that the increase in price did not compensate for the decrease in quantity demanded, resulting in a decrease in sales revenue.

When Nablom's Bakery Raised the Price of Its Breads by 10