A Monopolist Sells in Two Different Markets and Charges the Same

question 18

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 Qd = 50 - 2P. In Market B, the demand curve is described by Qd = 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, how much does its total revenue change by?

• A) -$33
• B) $459
• C) $767
• D) $308