The Accompanying Figure Depicts the Downward-Sloping Market Demand (D) Curve

question 18

Multiple Choice

The accompanying figure depicts the downward-sloping market demand (D) curve for a five-day western Caribbean cruise on Carnival Cruise Lines. The price (P) is per person in U.S. dollars, and the quantity (Q) is the number of passenger tickets sold. This figure also shows the company's relevant marginal revenue (MR) curve and marginal cost (MC) curve. Use this figure to answer the questions.
-Calculate the change in total welfare if Carnival Cruise Lines moves from a perfect price discrimination model to a monopolist model that charges a single price.

• A) There would be a gain of $800,000.
• B) There would be a loss of $400,000.
• C) There would be a gain of $400,000.
• D) There would be a loss of $1.2 million.
• E) There would be a gain of $1.2 million.

---

Definitions:

Occipital Bone

A cranial bone located at the back and lower part of the skull which houses the occipital lobes of the brain.

Anterior Fontanel

The largest soft spot on a baby's skull, located at the top front, which allows for growth of the brain and skull during an infant's first year.

Sagittal Suture

A fibrous joint located between the two parietal bones of the skull, running anteroposteriorly.

Stylomandibular Ligament

A band of fibrous tissue connecting the styloid process of the temporal bone to the mandible, playing a role in the limitation of the lower jaw's posterior movement.