The manner in which sloping downward demand curve is associated with marginal revenue and total revenue. Introduction: Demand curve represents the number of units sold at a particular price; this graph shows the prices and quantity sold. The 3 demand factors that affect price are consumer taste, price, and obtainability to substitute product and customer income. Total revenue is the sum of amount received by the firm on the sale of a product. Marginal revenue is the additional amount produced from the sale of an extra one unit of product.

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Chapter 13, Problem 3AMK

Summary Introduction

To discuss: The manner in which sloping downward demand curve is associated with marginal revenue and total revenue.

Introduction:

Demand curve represents the number of units sold at a particular price; this graph shows the prices and quantity sold. The 3 demand factors that affect price are consumer taste, price, and obtainability to substitute product and customer income.

Total revenue is the sum of amount received by the firm on the sale of a product.

Marginal revenue is the additional amount produced from the sale of an extra one unit of product.

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