Scenario: When a Monopolist Charges $10 for Its Product, It

question 211

Multiple Choice

Scenario: When a monopolist charges $10 for its product, it sells 500 units of the product. When it lowers the price to $6, it sells 1,400 units of the product.
-Refer to the scenario above.What is the price effect of the price change?

• A) $1,750
• B) $2,000
• C) $3,750
• D) $5,400

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Definitions:

NFC

Near Field Communication, a set of communication protocols for communication between two electronic devices over a distance of 4 cm or less.

RFID

Stands for Radio-Frequency Identification, a technology used for the wireless use of electromagnetic fields to transfer data, for the purposes of automatically identifying and tracking tags attached to objects.

Bluetooth

A wireless technology standard for exchanging data over short distances between fixed and mobile devices.

IrDA

Short for Infrared Data Association, a group that created standards for transmitting data via infrared light waves, enabling wireless communication between devices.