Suppose the input prices for Good X fall. Total revenue also fell. What must have happened?

a.Supply decreased, causing prices to increase. The supply curve must have shifted left to an elastic part of the demand curve. Consumers were responsive to the price increase. The price rose by less than the decrease in quantity demanded.

b.Supply increased, causing prices to rise. The supply curve must have shifted right to an elastic part of the demand curve. Consumers were not very responsive to the price decrease. The price rose by more than the increase in quantity demanded.

c.Supply increased, causing prices to fall. The supply curve must have shifted right to an inelastic part of the demand curve. Consumers were not very responsive to the price decrease. The price fell by more than the increase in quantity demanded.

d.Supply increased, causing prices to decrease. Demand increased in response to the price reduction. However, supply increase was greater than the demand increase. This caused total revenues to fall.