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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Definitions:

Storyboards

Visual representations of a film, animation, or story sequence, used for planning and communication purposes.

Minimum Viable Product

A product with just enough features to satisfy early customers and provide feedback for future product development.

Entrepreneur

An individual who starts and manages a business venture, taking on financial risks in the hope of profit.

User-Driven Prototype

A preliminary version of a product designed based on the feedback and requirements of its intended users to meet their specific needs.