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Suppose That a Monopolist Must Choose Between Two Points on Its

Question 105

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 150 units for $2 each.Which of the following is true?


A) The monopolist is facing 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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