14) The price effect of a price decrease by a monopolist refers to: A) the loss
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Question
14) The price effect of a price decrease by a monopolist refers to: A) the loss in revenue due to the price reduction. B) the increase in sales due to the price reduction. C) the increase in revenue because of an increase in sales. D) the decrease in the demand for labor due to the lower price of the final product. it Scenario: When a monopolist charges $5 decreases the price of the product to $4, it sells 325 units of the product. for its product, it sells 250 units of the product. When it 15) Refer to the scenario above. What is the change in total revenue to the price reduction? due A) The total revenue increases by $25. B) The total revenue increases by $50. C) The total revenue decreases by $105 D) The total revenue decreases by $175. 16) Refer to the scenario above. Which of the following is true of the demand curve of the product in the price range of $4 to $5? A) The demand curve is elastic. B) The demand curve is inclastic. C) The demand curve is horizontal. D) The demand curve is upward sloping. 17) In case of a decrease in product prices: A) the quantity effect always dominates the price effect. B) the price effect always dominates the quantity effect. C) when the price effect dominates the quantity effect, total revenue increases. D) when the quantity effect dominates the price effect, total revenue increases. 18) In case of a decrease in product prices: A) the quantity effect always dominates the price effect. B) the price effect always dominates the quantity effect. C) when the quantity effect dominates the price effect, total revenue decreases. D) when the price effect dominates the quantity effect, total revenue decreases. 19) In case of an increase in product prices A) the quantity effect always dominates the price effect. B) the price effect always dominates the quantity effect C) when the quantity effect dominates the price effect, total revenue is rising. D) when the quantity effect dominates the price effect, total revenue is falling. 20) In case of an increase in product prices: A) the price effect is always zero. B) the quantity effect is always zero. C) when the price effect dominates the quantity effect, total revenue is rising. D) when the price effect dominates the quantity effect, total revenue is fallingExplanation / Answer
14) THe answer is B -) The increase in sales due to price reduction .
because we know that quantity demanded is negative related to the price or they have inverse relationship. so when price decrease , the quantity demanded of the monopoly firm's output would increase. as a result there is a increase in sales. as after decrease in price , more people demanded his product and thus sales increase.
15) The asnwer is B -) total revenue increases by $50.
becasue, TR = 1250
new tr = 1300
so , change in tr = $50
16) The asnwer is A -) Demand curve is elastic
17) please upload the question. its against chegg policy
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