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it is suggested that selling between 30 and 40 cups of lemonade a day for a...

it is suggested that selling between 30 and 40 cups of lemonade a day for a week will raise enough revenue to pay for the repairs. What else would you need to know in order to calculate total revenue?

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Answer #1

It can be mentioned that, in order to understand whether your revenue is decreasing or not you have to understand the price elasticity of demand and this is because if your sale increased means price decreased and revenue will increase only when price elasticity of demand is elastic in nature and if it is inelastic in nature, total revenue decreases with increase in price what is the reason why you cannot understand the revenue change just by quantity increase where you have to understand the price elasticity of demand as well on the whole.

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