Consider the market for a new \( C D \), where the price is initially \( \$ 12.00 \) and 12 thousand copies are sold, as indicated in the figure at point \( A \). The music company is considering lowering the price to \( \$ 10.00 \), at which price 20 thousand copies would be sold. What is total revenue at the initial price (at point \( A \) )? Revenue is initially \( \$ 144 \) thousand. What would total revenue be at the lower price (at point \( B) \) ? Revenue would be \( \$ \square \) thousand.

Total revenue at the lower price would be \( \$ 200 \) thousand. This is calculated by multiplying the new price of \( \$ 10.00 \) by the quantity sold at that price of 20 thousand copies: \( 10 \times 20 = 200 \). Now, just to set the stage, the alteration in price leads to a substantial increase in quantity sold! Lowering the price from \( \$ 12.00 \) to \( \$ 10.00 \) not only attracts more buyers but also showcases how pricing strategies directly impact sales revenue. In this scenario, the total revenue experiences a jump from \( \$ 144 \) thousand to \( \$ 200 \) thousand, which is a fantastic boost that can propel further business decisions!