"Last October, due to an early frost, the price of a pumpkin increased by 10 percent compared to the price in the previous Halloween season. As a result, the quantity demanded county-wide decreased from 2 million to 1.5 million." Based on this statement, it is certain that the
A) demand curve for Halloween costumes shifted leftward.
B) price elasticity of demand for pumpkins decreased from its value in previous years.
C) demand curve for pumpkins shifted leftward.
D) total revenue from the sale of pumpkins decreased.

Question

Quizplus · Accepted Answer

The increase in price and decrease in quantity demanded suggests that the demand is elastic, leading to a decrease in total revenue.

"Last October, Due to an Early Frost, the Price of a Pumpkin