Table 4.2 - Demand schedule for automobiles
The following is a hypothetical demand schedule for automobiles.
-In Table 4.2,what is the total revenue from automobile sales at a price of $20,000 per auto?
A) $80 billion per year.
B) $40 billion per year.
C) $24 billion per year.
D) $20 billion per year.

Question

Table 4.2 - Demand schedule for automobiles
The following is a hypothetical demand schedule for automobiles. 
-In Table 4.2,what is the total revenue from automobile sales at a price of $20,000 per auto?
A) $80 billion per year. 
B) $40 billion per year. 
C) $24 billion per year. 
D) $20 billion per year.

Quizplus · Accepted Answer

The total revenue is equal to the price per auto multiplied by the number of autos sold. In this case, the price per auto is $20,000 and the number of autos sold is 4 million. Therefore, the total revenue is $20,000 * 4,000,000 = $80 billion.

Table 4.2 - Demand Schedule for Automobiles