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

Question 37

Multiple Choice

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


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

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