Question

In: Economics

The table shows the demand schedule facing Nina, a monopolist selling baskets. What is the change in total revenue if she raises the price from $12 to $14?

PriceNumber of Baskets Sold
$203
185
167
1410
1215
1030

The table shows the demand schedule facing Nina, a monopolist selling baskets. What is the change in total revenue if she raises the price from $12 to $14?

  • $-180

  • $180

  • $-40

  • $40

Solutions

Expert Solution

The Correct Option is $-40

Explanation:

Total Revenue = Price Quantity

At price of $12,

Total Revenue = 12 15 = 180

At price of $14,

Total Revenue = 14 10 = 140

Change in total revenue = Total revenue at price $14 - total revenue at price $12 = 140 - 180 = $-40

Rahul Sunny answered 2 years ago
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