Total revenue is calculated by multiplying the price of a product or service by the quantity sold. It is a measure of the total income generated from the sale of a particular good or service.

Explanation:
1. Total revenue equation: Total revenue = Price x Quantity
This equation represents the relationship between the price of a product or service and the quantity sold. In order to calculate the total revenue, you multiply the price per unit by the number of units sold.

2. Price: The price of a product or service is the amount that customers are willing to pay for it. It is determined by various factors such as production costs, competition, supply and demand, and consumer preferences.

3. Quantity: The quantity refers to the number of units of a product or service that are sold. It represents the volume or quantity of goods or services that customers purchase.

4. Example: Let's consider an example to understand the concept better. Suppose a company sells a product for $10 per unit and sells 100 units in a given time period. The total revenue would be calculated as follows:
Total revenue = $10 x 100 = $1000

5. Importance of total revenue: Total revenue is an important measure for businesses as it represents the overall income generated from the sale of goods or services. It helps in assessing the financial performance of a company and can be used to analyze trends, make pricing decisions, and evaluate the effectiveness of marketing strategies.

In conclusion, total revenue is calculated by multiplying the price per unit by the quantity sold. It is an important measure for businesses as it represents the total income generated from the sale of goods or services. The equation for total revenue is Total revenue = Price x Quantity.