A Monopolist Sells 6 Units of a Product Per Day

question 183

Multiple Choice

A monopolist 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 sales quantity increases by

• A)4 units per day.
• B)3 units per day.
• C)2 units per day.
• D)1 unit per day.

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Definitions:

Pure Monopolist's Demand Curve

Illustrates the relationship between price and quantity demanded for a monopolist, who is the sole provider of a product or service, typically showing a downward slope.

Elasticity Coefficient

A measure that quantifies how responsive the quantity demanded or supplied is to changes in price or other economic factors.

Downsloping

Describes a downward trend or inclination, often used in economics to describe a decrease in the price of a good leading to an increase in demand.

Elasticity Coefficient

A numerical measure of the responsiveness of the quantity demanded or supplied of a good to one of its determinants, like price or income.