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:

Simple Interest

Simple interest is a method of calculating the interest charge on a loan or investment based on the original principal amount and the rate of interest without compounding.

Account Balance

The amount of money held in a financial account, which reflects all transactions made.

Interest

The cost of borrowing money, usually expressed as a percentage of the principal, paid by the borrower for the use of borrowed funds.

Rate of Return

The positive or negative change in an investment's worth within a specific period, shown as a percent of the cost of the investment.