In December 2014, the average price of gasoline in the United States was $2.50 per gallon and consumers bought 7 percent more gasoline than they had during April 2014, when the average price was $3.60 per gallon.Based on these figures, when the price of gasoline fell from $3.60 per gallon to $2.50 per gallon, total revenue

Question

Quizplus · Accepted Answer

When the price decreased, the quantity demanded increased by 7%. However, the percentage decrease in price (from $3.60 to $2.50) is larger than the percentage increase in quantity demanded, leading to a decrease in total revenue.

In December 2014, the Average Price of Gasoline in the United