If the price of a widget increases from $40 to $50 which of the following would be the expected result
A)Total revenue will increase
B)Total revenue will decrease
C)Total revenue will initially increase but return to previous level
D)Total revenue will not be affected

Question

Quizplus · Accepted Answer

If the price of a widget increases, the demand for the product usually goes down, which means that the quantity sold would decrease. In this case, the increase in price from $40 to $50 could be significant, leading to a decrease in the quantity sold. As a result, total revenue would decrease.

If the Price of a Widget Increases from $40 to $50