Nitya sells bracelets at the Eaton Centre and is exploring introducing dynamic pricing depending on the time of the day. Nitya will decrease prices by 12% from 9am to 12pm and increase prices by 30% from 5pm to 9pm. As a result of the change, Nitya expects sales to go from 100 to 112 from 9am to 12pm and from 100 to 70 from 5pm to 9pm. How will the change impact revenues? A) Revenues will remain the same B) Revenues will increase  C) Revenues will decrease  D) Profits will not be affected

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A: Total Surplus s2  TS =CS+PS = [0.5*125*(380-305)] + [0.5*125*(305-230)] = 4687.5+4687.5 = 9375

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Q: see the question's as attached here

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