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Calculate the difference in the total revenue gained

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Reference no: EM133088157

Question -

1. With the help of demand and supply diagrams, examine the impact of the following statement on the equilibrium price and quantity;

Companies widely advertise a product and new companies entering into a market.

2. In 2020, the price of toys is BD 50 which is associated with a quantity sold of 225. In 2021, the producer has decided to increase the price of toys to BD 57.5. This was then associated with a quantity sold of 180.

Calculate the difference in the total revenue gained before the price rise and the total revenue gained after the price fall? Was it a good strategy to increase the price?

Reference no: EM133088157

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