Refer to the accompanying figure to answer the following questions.

-When the price changes from $50 to $30,the price effect leads to a loss of ________ in revenue.
A) $20
B) $15
C) $900
D) $600
E) $450

Question

Refer to the accompanying figure to answer the following questions.
 
-When the price changes from $50 to $30,the price effect leads to a loss of ________ in revenue.
A) $20 
B) $15 
C) $900 
D) $600 
E) $450

Quizplus · Accepted Answer

The price effect is calculated by multiplying the change in price by the original quantity sold. Assuming the original quantity sold was 30 units, the price change is $20 ($50 - $30), leading to a revenue loss of $600 ($20 x 30).

Refer to the Accompanying Figure to Answer the Following Questions