Question
upstudy study bank question image url

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.

Ask by Stuart Harris. in the United States
Mar 17,2025

Upstudy AI Solution

Tutor-Verified Answer

Answer

Total revenue at the lower price is \$200 thousand.

Solution

Sign in to Unlock Answers for Free!

A Learning Platform Trusted by Millions of Real Students and Teachers.

star-icon Unlock

Answered by UpStudy AI and reviewed by a Professional Tutor

Bonus Knowledge

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!

Latest Economics Questions

Try Premium now!
Try Premium and ask Thoth AI unlimited math questions now!
Maybe later Go Premium
Study can be a real struggle
Why not UpStudy it?
Select your plan below
Premium

You can enjoy

Start now
  • Step-by-step explanations
  • 24/7 expert live tutors
  • Unlimited number of questions
  • No interruptions
  • Full access to Answer and Solution
  • Full Access to PDF Chat, UpStudy Chat, Browsing Chat
Basic

Totally free but limited

  • Limited Solution
Welcome to UpStudy!
Please sign in to continue the Thoth AI Chat journey
Continue with Email
Or continue with
By clicking “Sign in”, you agree to our Terms of Use & Privacy Policy