Suppose Quantity Demanded Is 2,000 When Price Is $10 and 3,000

question 43

Multiple Choice

Suppose quantity demanded is 2,000 when price is $10 and 3,000 when price is $5. If a monopolist who was initially charging a price of $10 discovers a way to price-discriminate, it will be able to increase revenue from $20,000 to:

• A) $25,000 by charging consumers with less elastic demands only $5 and keeping the price for consumers with more elastic demands at $10.
• B) $35,000 by charging consumers with less elastic demands only $5 and keeping the price for consumers with more elastic demands at $10.
• C) $25,000 by charging consumers with more elastic demands only $5 and keeping the price for consumers with less elastic demands at $10.
• D) $35,000 by charging consumers with more elastic demands only $5 and keeping the price for consumers with less elastic demands at $10.

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Practical Intelligence

Practical Intelligence implies the ability to solve everyday problems by utilizing knowledge gained from experience, as opposed to theoretical or abstract intelligence.

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Interpersonal Intelligence

The ability to understand and interact effectively with others, involving sensitivity to the moods, feelings, temperaments, and motivations of people.