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When a Monopolist Lowers a Price from $80 to $70

Question 140

Multiple Choice

When a monopolist lowers a price from $80 to $70, the quantity that the firm is able to sell increases from 100 to 150. The change in revenue associated with the price effect is equal to:


A) $3,500.
B) ?$3,500.
C) $1,000.
D) ?$1,000.
E) $4,000.

Correct Answer:

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