Chris Makler
Stanford University
econgraphs.org
JET SET 2022
Follow and play along: https://bit.ly/econgraphs-jetset
SECRETLY ALREADY PUBLISHED
LONG-TERM PLAN
The total revenue is the price times quantity (area of the rectangle)
The total revenue is the price times quantity (area of the rectangle)
If the firm wants to sell \(\Delta Q\) more units, it needs to drop its price by \(\Delta P\)
Revenue loss from
lower price on existing sales
Revenue gain from additional sales
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