Refer to the graphs below of D and MR for a monopolist. Which of the following statements is true?
A. A price cut from P1 to P2 would lead to a decrease in consumer spending on the product
B. A price cut from P1 to P2 would lead to an increase in consumer spending on the product
C. A price cut from P2 to P3 would lead to no change in consumer spending on the product
D. A price cut from P2 to P3 would lead to an increase in consumer spending on the product
B. A price cut from P1 to P2 would lead to an increase in consumer spending on the product
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Which of the following statements is true?
A) Technological innovation can cause wages to fall for some workers. B) Technological innovation increases wages for all workers in an economy. C) Technological innovation always leads to unemployment in the economy as a whole. D) Technological innovation reduces the demand for goods and services in an economy.
Suppose the measured unemployment rate is 7.5% and the true natural rate of unemployment is 5.1%. If the chair of the Fed believes the natural rate of unemployment to be 6.7%, then the chair will
A) stimulate the economy when it should be slowed. B) slow the economy when it should be stimulated. C) stimulate the economy, exactly as called for. D) slow the economy, exactly as called for.