(Integrated / Business Reasoning)Business scenario – pricing decision: A SaaS company currently charges $50 per user per month and has 2,000 users. Market research suggests that reducing the price to $45 would increase the user base to 2,400. Ignoring all other costs, what happens to monthly revenue if the company reduces the price?

🎲 Try a Random Question  |  Total Questions in Quiz: 15  |  🧠 Study this quiz with Flashcards
This question is part of a full practice quiz:
Executive MBA / GMAC-style assessment (quant, verbal, business reasoning) — practice the complete quiz, review flashcards, or try a random question.

This quiz is designed based on the GMAC Executive Assessment (EA) format, which is commonly used for Executive MBA admissions. It features three sections—Quantitative, Verbal, and Integrated Reasoning—designed for experienced professionals.


(Integrated / Business Reasoning)Business scenario – pricing decision: A SaaS company currently charges $50 per user per month and has 2,000 users. Market research suggests that reducing the price to $45 would increase the user base to 2,400. Ignoring all other costs, what happens to monthly revenue if the company reduces the price?