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 __ A. decreases by 5 inelastic B. initially is 45 unit elastic D C. equals quantity sold divided by price; elastic D. decreases from 45 to 40 elastic

To determine the correct answer, let's analyze the given information and apply the total revenue test.<br /><br />Given:<br />- The price of tomatoes rises from $3 per pound to $4 per pound.<br />- The quantity of tomatoes sold decreases from 15 pounds to 10 pounds.<br /><br />Total revenue is calculated as the product of price and quantity sold. Initially, the total revenue is:<br />\[ \text{Total revenue} = \text{Price} \times \text{Quantity} = \$3 \times 15 = \$45 \]<br /><br />After the price increase, the total revenue becomes:<br />\[ \text{Total revenue} = \$4 \times 10 = \$40 \]<br /><br />The total revenue decreases from $45 to $40, which indicates that the demand for tomatoes is elastic. In an elastic demand scenario, the percentage decrease in quantity sold is greater than the percentage increase in price, leading to a decrease in total revenue.<br /><br />Therefore, the correct answer is:<br />D. decreases from $\$ 45$ to $\$ 40$ elastic