At which price does the retailer maximize total sales revenue? Selling Price Quantity Demanded
(in $) (in units)
7 11,000
8 9,500
9 9,000
10 8,000
A) $7.00
B) $8.00
C) $9.00
D) $10.00

Question

Quizplus · Accepted Answer

To determine the price at which total sales revenue is maximized, we need to calculate the total revenue for each selling price (price x quantity demanded). 
- Revenue at $7.00 = $7.00 x 11,000 = $77,000 
- Revenue at $8.00 = $8.00 x 9,500 = $76,000 
- Revenue at $9.00 = $9.00 x 9,000 = $81,000 
- Revenue at $10.00 = $10.00 x 8,000 = $80,000 
Thus, the retailer would maximize total sales revenue by selling at a price of $9.00.

At Which Price Does the Retailer Maximize Total Sales Revenue