An accountant increases the price he charges for his services by 2 percent. In response, the demand for his services decreases by 16 percent. Will the accountant's revenue from his accounting services increase, decrease, or remain unchanged?
The reason is that the price and demand are inversely proportional so if the price has been increased then the demand of the product will be decreased. Take the example of Bugatti Chiron, the price of the car is $19 million and total number of people that own is in tens this is because the buyers are less in quantity due to higher prices of the product. Same is the case here, if the accountant is going to charge high then his revenue will drop due to lower people are willing to buy its services.
