a-company-increases-the-price-of-its-product-from-45-to-55-resulting-in-a-decrea

Question

A company increases the price of its product from $45 to $55, resulting in a decrease in quantity demanded from 700 units to 600 units. What are the price effect and quantity effect on total revenue?

Accepted Answer

Price effect increases revenue by $6,000; quantity effect decreases revenue by $4,500.

Answer

Price effect increases revenue by $4,500; quantity effect decreases revenue by $6,000.

Answer

Price effect decreases revenue by $4,500; quantity effect increases revenue by $6,000.

Answer

Price effect decreases revenue by $6,000; quantity effect increases revenue by $4,500.

A company increases the price of its product from \$45 to \$55, resulting in a decrease in quantity demanded from 700 units to 600 units. What are the price effect and quantity effect on total revenue?