A monopolist sells 6 units of a product per day at a unit price of $15. If it lowers price to $14, its total revenue increases by $22. This implies that its sales quantity increases by:

A. 4 units per day
B. 3 units per day
C. 2 units per day
D. 1 unit per day


C. 2 units per day

Economics

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A recessionary gap is the amount by which

A) the short-run equilibrium level nominal GDP is above the short-run real GDP. B) the short-run equilibrium level nominal GDP is below the short-run real GDP. C) total planned real expenditures exceed total planned production in the long run. D) the short-run equilibrium level of real GDP is below the full-employment level of real GDP.

Economics

Suppose the government's initial debt is $350 billion and that during the next two years the government runs deficits of $90 and $40 billion

If during the third year the government has a $70 billion surplus, the government's total debt at the end of the three years will be A) $60 billion. B) $200 billion. C) $410 billion. D) $550 billion.

Economics

If the real interest rate is 4 percent and the nominal interest rate is 7 percent, this implies an expected inflation rate of

A) 3 percent. B) 4 percent. C) 5.5 percent. D) 11 percent.

Economics

What is the difference between a command economy and a laissez-faire economy?

What will be an ideal response?

Economics