Scenario: When a Monopolist Charges $5 for Its Product, It

question 202

Multiple Choice

Scenario: When a monopolist charges $5 for its product, it sells 250 units of the product. When it decreases the price of the product to $4, it sells 325 units of the product.
-Refer to the scenario above.What is the change in total revenue due to the price reduction?

• A) Total revenue increases by $25.
• B) Total revenue increases by $50.
• C) Total revenue decreases by $105.
• D) Total revenue decreases by $175.

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