Answer:
The change in total revenue is $10000
The percentage change in Total revenue is 5.88%
Explanation:
The revenue is a function of price multiplied by quantity sold.
Revenue = Price * Quantity sold
At the orignal price of $17, the monopolist is earning a revenue of,
Revenue at $17 = 10000 * 17 = $170000
The revised price for the monopolist is $17 - $2 = $15
The revised demand and expected sales at the revised price is 10000 + 2000 = 12000 units
The revenue at the revised values is,
Revenue at $15 = 12000 * 15 = $180000
The change in Total revenue = 180000 - 170000 = $10000
The percentage change in revenue = 10000 / 170000 = 0.0588 or 5.88%
