A Monopolist Can Either Sell 100 Units for $3 Each

question 86

Multiple Choice

A monopolist can either sell 100 units for $3 each or sell 160 units for $2 each.This implies that,for the given range of output,elasticity of demand for the monopolist's product is _____

• A)greater than one but not infinite.
• B)one.
• C)zero.
• D)less than zero.
• E)infinite.

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Definitions:

Disposable Income

Money in hand for households dedicated to saving and spending after navigating through income taxes.

APS

The ratio of savings to income, indicating the proportion of income that is saved rather than spent.

Disposable Income

Spending and saving financial pools available to households subsequent to the application of income taxes.

APC

Acronym generally referring to the Average Propensity to Consume, which is the fraction of income spent on consumption.