If a monopolist lowers its price
A. the quantity demanded decreases.
B. the quantity demanded increases.
C. the quantity demanded remains the same.
D. the quantity demanded becomes zero.
Answer: B
Economics
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Newspaper accounts of the U.S. labor market often point out that many people are working more hours than their parents did. What might explain this phenomenon?
A) the substitution effect B) the endowment effect C) bounded rationality D) the income effect
Economics
A short-run aggregate supply curve (SRAS) assumes: a. the CPI is fixed
b. each point on the SRAS is potential real GDP. c. fixed or sticky nominal wages. d. nominal wages vary directly with price changes.
Economics