-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:

Duty

An obligation placed on individuals because of the law.

Employee

An employee is an individual who works part-time or full-time under a contract of employment, whether oral or written, express or implied, and has recognized rights and duties.

Commingle

To mix or blend funds or assets from different sources, often in a way that makes them indistinguishable.

Personal Funds

Money owned by an individual that is not tied to any business, investment, or other financial obligations, typically used for personal expenses or savings.