Suppose the accompanying figure illustrates the demand curve facing a monopolist. If the monopolist decreases its price from $12 to $10, its total revenue will ________.
A)increase by $1,000
B)decrease by $1,000
C)increase by $600
D)decrease by $600

Question

Suppose the accompanying figure illustrates the demand curve facing a monopolist.  If the monopolist decreases its price from $12 to $10, its total revenue will ________.
A)increase by $1,000 
B)decrease by $1,000 
C)increase by $600 
D)decrease by $600

Quizplus · Accepted Answer

At $12 the firm will sell 200 units for total revenue of $2,400. At $10 the firm will sell 300 units for total revenue of $3,000.

Suppose the Accompanying Figure Illustrates the Demand Curve Facing a Monopolist