Which of the following statements is true?
A) Lower prices always lower total revenue.
B) Higher prices always raise total revenue.
C) Higher prices always lower total revenue.
D) Lower prices always raise total revenue.
E) none of the above

Question

Quizplus · Accepted Answer

The relationship between price and total revenue depends on the price elasticity of demand. In some cases, lower prices may increase total revenue by attracting more customers, while in other cases, higher prices may increase total revenue by conveying a sense of quality or exclusivity. Therefore, the effect of price on total revenue cannot be generalized.

Which of the Following Statements Is True