To determine at which price revenues are the lowest, we need to calculate the total revenue (TR) at each price level. The total revenue is calculated as:
\[ \text{Total Revenue (TR)} = \text{Price} \times \text{Quantity Sold} \]
Let's calculate the total revenue for each price level in the chart:
-
At price $20:
- Quantity Sold = 20
- TR = $20 * 20 = $400
-
At price $18:
- Quantity Sold = 25
- TR = $18 * 25 = $450
-
At price $16:
- Quantity Sold = 30
- TR = $16 * 30 = $480
-
At price $14:
- Quantity Sold = 35
- TR = $14 * 35 = $490
-
At price $12:
- Quantity Sold = 40
- TR = $12 * 40 = $480
Next, we can summarize the total revenues calculated:
- At $20: $400
- At $18: $450
- At $16: $480
- At $14: $490
- At $12: $480
From the calculations, it's evident that the total revenue is lowest at the price of $20, where TR is $400.
Thus, the answer is: b. $20