Suppose that at a price of $$ \$ 30 $$ per month, there are 30,000 subscribers to Small Town Streaming Service. If Small Town Streaming Service raises its price to $$ \$ 40 $$ per month, the number of subscribers will fall to 20,000 . At which of the following prices does Small Town Streaming Service earn the greatest total revenue? a. Either $$ \$ 30 $$ or $$ \$ 40 $$ per month because the price elasticity of demand is 1.0 b. $$ \$ 30 $$ per month c. $$ \$ 40 $$ per month d. $$ \$ 0 $$ per month

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To determine at which price Small Town Streaming Service earns the greatest total revenue, we can calculate the total revenue at both price points and compare them.

**Step 1: Calculate Total Revenue at $$ \$30 $$ per month.**

Total Revenue (TR) is calculated as:
$$
TR = \text{Price} \times \text{Quantity}
$$

At $$ \$30 $$:
- Price = $$ 30 $$
- Quantity = $$ 30,000 $$

So,
$$
TR_{30} = 30 \times 30,000
$$

**Step 2: Calculate Total Revenue at $$ \$40 $$ per month.**

At $$ \$40 $$:
- Price = $$ 40 $$
- Quantity = $$ 20,000 $$

So,
$$
TR_{40} = 40 \times 20,000
$$

**Step 3: Calculate the total revenues.**

Now, let's perform the calculations for both price points.

Calculating $$ TR_{30} $$:
$$
TR_{30} = 30 \times 30,000 = 900,000
$$

Calculating $$ TR_{40} $$:
$$
TR_{40} = 40 \times 20,000 = 800,000
$$

**Step 4: Compare the total revenues.**

- Total Revenue at $$ \$30 $$ = $$ 900,000 $$
- Total Revenue at $$ \$40 $$ = $$ 800,000 $$

**Conclusion:**

The total revenue is greater at $$ \$30 $$ per month than at $$ \$40 $$ per month. Therefore, the answer is:

**b. $$ \$ 30 $$ per month**
At \$30 per month, Small Town Streaming Service earns the greatest total revenue.

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