Supply Shift Increases Total Revenue Steps:

• Initial equilibrium: price $40, quantity 10, total revenue =$40 × 10 = $400.
• New supply at $40 = 10 × 1.5 = 15; at$30 = 8 × 1.5 = 12.
• New equilibrium between $30 and$40; approximate price = ($30 +$40)/2 = $35.
• Approximate quantity = (10 + 15)/2 = 12.5; new revenue = $35 × 12.5 =$437.50 ≈ $440. Why B is correct:
• Total revenue rises as the percentage increase in quantity exceeds the percentage decrease in price, per the revenue formula TR = P × Q. Why the others are wrong:
• A: Revenue rises due to higher quantity outweighing price drop.
• C: Assumes constant price and full additional quantity sold at $40 (5 ×$40 = $200), ignoring price fall.
• D: Insufficient information provided.

Final answer: B