Total revenue
Total revenue (TR) is the firm's total income from sales, calculated as Price × Quantity (P × Q). It represents the total cash received from customers before accounting for costs.
Real World
When Spotify raised its UK subscription from £9.99 to £10.99 in 2023, its total revenue rose because subscriber numbers barely fell — showing how inelastic demand boosts TR after a price increase.
Exam Focus
Always connect TR changes to price elasticity of demand — state whether demand is elastic or inelastic.
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