Refer to Figure 16-5. Suppose the firm represented in the diagram decides to use a two-part pricing strategy such that it charges a fixed fee and a per-unit price equal to the monopoly price. What is the quantity it should produce?

If real GDP decreases, there is

A) an upward movement along the demand for money curve and no shift of the curve. B) a leftward shift of the demand for money curve. C) no movement along the demand for money curve and the curve does not shift. D) a downward movement along the demand for money curve and no shift of the curve. E) a rightward shift of the demand for money curve.

Why are estimated models of demand and consumer behavior useful to managers?

What will be an ideal response?