CIA4U – Current Economic Issues
Total Revenue Calculations
ELASTICITY OF DEMAND
TOTAL REVENUE CALCULATIONS
How many snack-size chocolate bars would the class buy at each of the following prices?
PRICE PER
BAR
# OF BARS
$0.05
680
$0.10
551
$0.15
464
$0.20
409
$0.25
313
$0.30
266
$0.35
218
$0.40
162
$0.45
151
$0.50
127
TOTAL
REVENUE
1.
Indicate the upward changes in price that caused Total Revenue to increase.
2.
Indicate the upward changes in price that caused Total Revenue to decrease.
3.
Were there any price changes that did not cause a corresponding change in Total
Revenue?
4.
At what price point is Total Revenue at its highest?
5.
At what price point is Total Revenue at its lowest?