The total amount of money a company receives from sales of a product is called Total Revenue
Total Revenue =(price) x (Quantity sold)
The relationship between price, elasticity, and total revenue Increasing price increases total revenue Increasing price decreases total revenue Inelastic Demand Decreasing price decreases total revenue Elastic Demand Decreasing price increases total revenue
Find the dollar value of total revenue at each of the six prices. At what price will total revenue be the greatest? How many units will sell at that price?