Suppose InNOut burgers sells only burgers and that P and Y a

Suppose In-N-Out burgers sells only burgers, and that P and Y are the price and quantity of burgers sold. In-N-Out revenues R are given by R=P.Y. Finally, suppose P grows at 1% and Y grows at 2%. Given this information you can say that revenues grow at

Solution

What is Total Revenue-

In economics, The total Revenue is a means for determining whether demand is elastic or inelastic .if an increase in price causes an increase in total revenue ,then demand can be said to be inelastic,since the increase in price does not have a large impact on quantity demanded. If an increase in price causes a decrease in total revenue, then demand can be said to be elastic, since the increase in price has a large impact on quantity demanded.

In this case both price (1%) and quantity (2%) are growing so that Revenue will also increase.