-Refer to the Graphs Above to Answer This Question

question 40

Multiple Choice

-Refer to the graphs above to answer this question.Suppose that the price of nuts decreases from P₁ to P₂ and the demand curve for chocolates shifts to the right from D₁ to D₂.What is the effect to total revenue from the sale of both nuts and chocolates?

• A)Total revenue will not change since the cross-elasticity coefficient is not known.
• B)Total revenue from the sale of chocolates will rise but not the total revenue from nuts.
• C)Total revenue may rise or fall depending on the size of the price decrease of nuts.
• D)Total revenue from the sale of both nuts and chocolates will fall.
• E)Total revenue from the sale of both nuts and chocolates will rise.

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Definitions:

Distribution

Refers to the way in which something is shared or exists across different areas or among various groups.

Median

The median is the value that falls in the middle of a dataset after it has been sorted in either increasing or decreasing order.

Mean

The mean value of a group of numbers, which is obtained by dividing the sum total of these numbers by their count.

Set of Data

A collection of data points or values obtained from measurements, observations, or computations.