A Firm Derives Revenue from Two Sources: Goods X and Y.Annual

Multiple Choice

A firm derives revenue from two sources: goods X and Y.Annual revenues from good X and Y are $10,000 and $20,000,respectively.If the price elasticity of demand for good X is −4.0 and the cross-price elasticity of demand between Y and X is 2.0,then a 2 percent decrease in the price of X will:

A) increase total revenues from X and Y by $520.
B) decrease total revenues from X and Y by $200.
C) leave total revenues from X and Y unchanged.
D) decrease total revenues for X and Y by $600.