Just when you really, really want an ice cream cone, the price is rising. But it isn't summertime gouging by manfacturers. The cost of milk fat, the principal ingredient in ice cream, jumped 71% druing the past 6 months to 2.22 at the end of June. As a result, retail prices of ice cream are up 4% from last year, manfacturers say, triggering a 3% drop in comsumption. From last year to this year, what happened to the total revenue from ice cream. Explain
Total revenue is P*Q. Let P and Q be initial price and quantity. So, new total revenue will be (1.04)*P * (.97*Q) So, the change in total revenue is .....
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