A car rental agency lowers their rates by 10 percent. If the agency wants to recoup the income lost by lowering the prices and have total revenues at least as high as before, it needs sales to:

a. Increase by 5 percent,

b. Increase by 10 percent,

c. Increase by 20 percent,

d. Decrease by 10 percent.

A car rental agency lowers their rates by 10 percent. If the agency wants to recoup the income lost by lowering the prices and have total revenues at least as high as before, it needs sales to b. Increase by 10 percent,

Total revenue is the quantity sold multiplied by the price. If the price decreases by 10 percent, and all other factors remain the same, then the sales volume must increase by 10 percent to maintain the same revenue.