In the Inelastic Portion of a Monopolist's Demand Curve, an Increase

question 55

Multiple Choice

In the inelastic portion of a monopolist's demand curve, an increase in price will

• A) reduce output quantity, increase total revenue, and increase total cost.
• B) reduce output quantity, increase total revenue, and decrease total cost.
• C) raise output quantity, decrease total revenue, and increase total cost.
• D) reduce output quantity, decrease total revenue, and decrease total cost.

---

Definitions:

Market Interest Rate

The prevailing rate of interest available in the market for securities of comparable risk and maturity, influencing how much interest is paid on bonds and loans.

Loan Origination Fees

Charges paid to a lender or broker for processing a new loan application, used as compensation for putting the loan in place.

Periodic Interest Revenue

The interest income earned on investments during a specific period, reflecting the return on interest-bearing financial assets.

Note Proceeds

The amount of money received by a borrower from the lender when a note is issued; essentially the principal amount of the loan.