Principles of Microeconomics / Unit 4 MIC 0313 short lesson, about 20 seconds
Total Revenue
Captions available
The idea
Total revenue is price times quantity sold. On the diagram it is the rectangle under the point on the demand curve, and a price change reshapes that rectangle.
In practice
Eight hundred tickets at twelve dollars is nine thousand six hundred dollars of revenue.
Where people slip
A price rise always cuts quantity, so revenue can go either way. Which way depends on elasticity alone.
Your place on the trail
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