A pure monopoly sells 6 units of a product per day at a unit price of $15. If it lowers the price to $14, its total revenue increases by $22. This implies that its sold output increases by ________.
A. 4 units per day
B. 3 units per day
C. 2 units per day
D. 1 unit per day
Answer: C
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Suppose that total expenditures for coffee reach a maximum at a price of $5 per pound. At this price, the demand for coffee is:
A. elastic. B. inelastic. C. perfectly inelastic. D. unit elastic.
Which of the following usually leads to currency appreciation?
A. Galloping inflation B. Relatively low interest rates C. Declining real GDP D. Fixed exchange rates
Jim saw a decrease in the quantity demanded for his firm's product from 8000 to 6000 units a week when he raised the price of the product from $200 to $250 . What is Jim's own price elasticity of demand?
a. 1.29 b. 1 c. 0.25 d. 0.78
As compared to a pollution tax, a command-and-control policy will increase production costs by a ________ amount and increase equilibrium price by a ________ amount.
A. larger; larger B. larger; smaller C. smaller; larger D. smaller; smaller