A Firm Produces and Sells Two Goods, a and B

Multiple Choice

A firm produces and sells two goods, A and B. Good A is known to have many close substitutes; good B makes up a significant portion of most families' budgets. A price increase for each good would most likely cause total revenues from good A to

A) increase and total revenues from good B to decrease
B) increase and total revenues from good B to increase.
C) decrease and total revenues from good B to increase.
D) decrease and total revenues from good B to decrease.