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    Total revenue

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    The teenager company makes and sell skateboards at an average price of $ 70 eacch. during the past year they sold 4000 of these skateboards. the company believes that the price elasticity for this product is about -2.5. if it decreases the price to $ 63 what should be the quantity sold? will revenue increase? why?

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    https://brainmass.com/economics/microeconomics/total-revenues-quantity-sold-318099

    Solution Preview

    the teenager company makes and sell skateboards at an average price of $ 70 eacch. during the past year they sold 4000 of these skateboards. the company believes that the price elasticity for this product is about -2.5. if it decreases the price to $ 63 what should be ...

    Solution Summary

    Total revenue is studied. Why revenue will increase is determined.

    $2.19