A Monopolist Sells in Two Different Markets and Charges the Same

question 99

Multiple Choice

A monopolist sells in two different markets and charges the same price of $10 in both markets. In Market A, the demand curve is described by Q_d = 50 - 2P. In Market B, the demand curve is described by Q_d = 60 - P. If the monopolist lowers prices by $1 in the market with the more elastic demand and raises prices by $1 in the market with the more inelastic demand curve, by how much does its total revenue change?

• A) -$27
• B) $459
• C) $767
• D) $308

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Negative News

Information or messages that convey unfavorable, disappointing, or unpleasant content, which may require careful communication to manage its impact.

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A method of communication where the main point or request is stated outright at the beginning, often used in business and professional writing.

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