Final answer:
Reducing the price of dragon fruit from $3 to $2 at Yao's Asian Market may lead to increased sales volume and potentially higher total revenue if the demand significantly rises. The outcome is based on the laws of demand and supply, where a lower price often results in higher demand, given other factors remain constant.
Step-by-step explanation:
When Yao's Asian Market reduces the price of dragon fruit from $3 to $2, there are a few possible outcomes we might expect to see based on the principles of demand and supply. Considering that the dragon fruit is in season and the store can maintain a steady delivery, reducing the price is likely to increase its sales volume. This is because the law of demand states that, ceteris paribus, when the price of a good decreases, the quantity demanded for that good increases. Assuming that customers perceive dragon fruits to be more attractive at the lower price, they're inclined to buy more. This could potentially increase the store's revenue if the sales volume increases enough to offset the reduced price per unit.
To illustrate, before the sale, if the store sold 20 dragon fruits a week at $3 each, their weekly revenue from dragon fruits would be 20 × $3 = $60. During the sale, if the number of dragon fruits sold increases to, let's say, 40 per week at $2 each, then their weekly revenue would be 40 × $2 = $80. Thus, the sale could lead to a higher total revenue if the increase in quantity sold compensates for the lower price point.