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.

---

Definitions:

Adaptive

Characterized by or showing an ability to adjust to new conditions or environments, often used in the context of biological organisms or learning strategies.

Babinski Reflex

A neurological reaction in infants when the sole of the foot is stroked, causing the big toe to move upward; an indicator of nervous system development.

Toes

The digits of the foot in humans and other animals, which play a crucial role in balance, movement, and tactile sensing.

Stroking

The act of gently rubbing or touching something or someone, often in a manner that is soothing or affectionate.