CAIE IGCSE Economics 3.6.4 Calculation of revenue
Practise calculating total and average revenue from price, output and sales data, then linking demand changes to revenue outcomes.
- Syllabus
- 2027–2029
- Course
- Economics 0455
Exam points
- calculate TR or AR from price, quantity sold and revenue tables
- compare revenue at different outputs to find the largest profit or revenue change
- explain why revenue may rise using demand, price, sales volume or advertising effects
3.6.4—Calculation of revenue question 1
[Maximum number: 2]
A third of the world's ski resorts are located in the Alps. Prices for holidays in the Alps are relatively higher than in other regions. The recent pandemic, however, reduced the revenues of many large and small firms in the tourism industry in the winter season of 2020/2021. Many blamed strict government regulations for this. However, government intervention also helped many firms to survive.
State how average revenue is calculated.
State how average revenue is calculated.
Average revenue = total revenue (1) / quantity sold (1)
2
Accept quantity without 'sold' as the divisor.
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