Question

When the price of tomatoes rises from​ $3 per pound to​ $4 per​ pound, the quantity of tomatoes sold decreases from 15 pounds to 10 pounds. Total revenue​ _____, and using the total revenue test​, we can determine that the demand for tomatoes is​ _____ .

Answer 1

Total Revenue Decreases and the demand for tomatoes can is elastic

Step-by-step explanation:

The total revenue for tomatoes decreases from 45 to 40.

How?

When it was $3 per pound, the quantity of goods demanded was 15 pounds which will amount to $45. However, when the price increased to $4, the quantity demanded also reduced to 10 pounds given a revenue of $40.

On the other hand, the demand for tomatoes is said to be Elastic because the change in price brings about a greater change in quantity demanded.