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 .

Total Revenue Decreases and the demand for tomatoes can is elastic  

Explanation:

The total revenue for tomatoes decreases from 45 to 40.

How?

When it was $3 per pound, the quantity of goods demanded was 15 pounds which will amount to $45. However, when the price increased to $4, the quantity demanded also reduced to 10 pounds given a revenue of $40.  

On the other hand, the demand for tomatoes is said to be Elastic because the change in price brings about a greater change in quantity demanded.

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