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Happening to the total revenue

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Now, starting with the price of $6 and working down the demand curve $1 at a time, explain what is happening to the total revenue at each price and why. You need to relate the TR back to the Ed formula and explain. (10)

Total revenue at each price:

  • Price 0: Total revenue = $0x60 = $0
  • Price $1: Total revenue = $1x50 = $50
  • Price $2: Total revenue = $2x40 = $80
  • Price $3: Total revenue = $3x30 = $90
  • Price $4: Total revenue = $4x20 = $80
  • Price $5: Total revenue = $5x10 = $50
  • Price $6: Total revenue = $6x0 = $0

Reference no: EM131311267

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