Total differential of the tr , Econometrics

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A  firm's  total  revenue (TR)  is  provided by  pq, where  p  is  price  and  q  is  quantity sold. Assume the  firm  is  initially  selling  1000  units  of  its  product at  a  price  of  100 euros. Then it enhances the price by 10% which results in a decreases of 5% in quantity sold.

(a) Use  the  total  differential  of  the TR  function  to  approximate  the  alter in total revenue.

(b) What percentage error results from using the differential compared with the true solution?   


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