1. Looking at the graph above, if a monopolist lowers the price from $16 to $14, the quantity consumers are willing and able to buy changes from
A) 10 to 4
B) 3 to 2
C) 2 to 3
D) 4 to 10
2. Looking at the above graph, total revenue at a price of $16 is
A) 2 x $16 = $32
B) 2 x $14 = $28
C) 3 x $16 = $48
3. Looking at the above graph, at a price of $14, what is total revenue?
A) 3 x $14 = $42
B) 2 x $14 = $28
C) 3 x $16 = $48
4. Looking at the graph above, when the monopolist lowers its price from $16 to $14, the marginal revenue is
A) $10, which is below the price of the product.
B) $10, which is above the price of the product.
C) $14, which is equal to the new price of the product.
Price $20
Revenue loss=$4 Revenue gain=$14 Marginal revenue $14$4$10 Cowen/Tabarrok, Modern Principles of Economics, 5e ©2021 Worth Publishers Demand 6 10 2 3 4 6 Marginal Quantity revenue
17 16 15 14 13 12 11 10
8 7 6 5 4 3 2 1