Suppose That a Monopolist Must Choose Between Two Points on Its

question 188

Multiple Choice

Suppose that a monopolist must choose between two points on its demand curve; it can sell 100 units for $3 each, or it can sell 160 units for $2 each.Which of the following is true?

• A)The monopolist is facing an elastic demand.
• B)The monopolist is facing unit elastic demand.
• C)The monopolist is facing inelastic demand.
• D)The monopolist is facing perfectly elastic demand.
• E)The elasticity of demand cannot be determined with the information given.

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Definitions:

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