1 / 5

What is total revenue?

What is total revenue?. How are total revenue and elasticity related? How do you graph total revenue curves? How do you calculate total revenue?. What is total revenue?.

Download Presentation

What is total revenue?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. What is total revenue? How are total revenue and elasticity related? How do you graph total revenue curves? How do you calculate total revenue?

  2. What is total revenue? • Businesses care about elasticity of demand—it helps them figure out their total revenue, and whether demand for a product is elastic or inelastic • Total revenue—total amount of a company's sales and other sources of income. • does not include earnings or profits, which take expenses into account. • high total revenue is desirable for any company.

  3. It’s simple! # of units sold X price of unit revenue or TR=P x Q Practice 1: Backyard BBQ Co. sold 4,088 grills at a price of $89 each. What was their total revenue? Practice 2: Alex’s Lemonade sold 1,250 glasses of original lemonade at $1.50 a glass. They sold 1,300 glasses of pink lemonade at $1.75 a glass. What was their total revenue? How do you calculate total revenue?

  4. What does total revenue look like on a graph? • The demand schedule can help you make a demand curve, then you point out areas of elasticity.

  5. Multiply the Qd by the price in the demand curve to create a TR graph What does total revenue look like on a graph?

More Related