A Monopolist Sells in Two Different Markets and Charges the Same

question 99

Multiple Choice

A monopolist sells in two different markets and charges the same price of $10 in both markets. In Market A, the demand curve is described by Q_d = 50 - 2P. In Market B, the demand curve is described by Q_d = 60 - P. If the monopolist lowers prices by $1 in the market with the more elastic demand and raises prices by $1 in the market with the more inelastic demand curve, by how much does its total revenue change?

• A) -$27
• B) $459
• C) $767
• D) $308

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Definitions:

Interest Rate

The cost of borrowing money or the return on savings, usually expressed as a percentage.

Interest Rate

The percent of principal charged by the lender for the use of its money or the rate earned on deposited funds.

Revenues

Revenues are the total amount of money generated by a company from its business activities, such as the sale of goods or services, before any costs or expenses are deducted.

Interest Rate

The interest rate is the cost of borrowing money or the return earned from lending money, typically expressed as a percentage of the principal amount per year.