In September 2012, the average price of gasoline in the United States was $3.91 per gallon, and consumers purchased nearly 5 percent less gasoline than they had during September 2011, when the average price of gasoline was $3.66 per gallon. Based on these figures, when the price of gasoline rose from $3.66 per gallon to $3.91 per gallon, total revenue
A) increased.
B) decreased.
C) did not change.
D) There is not enough information to determine what happened to total revenue.

Question

Quizplus · Accepted Answer

The price increase from $3.66 to $3.91 per gallon is approximately 6.8%, while the quantity purchased decreased by 5%. Since the percentage increase in price is greater than the percentage decrease in quantity, total revenue increased.

In September 2012, the Average Price of Gasoline in the United