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Monopoly Revenue
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Monopoly Revenue
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12. Monopoly / Monopoly Revenue / Problem 8
Problem 8
Predict the outcome on revenue and sales quantity if a monopoly decreases its price by 15% in a market with inelastic demand.
A
Revenue remains unchanged, sales quantity remains unchanged.
B
Revenue decreases, sales quantity increases slightly.
C
Revenue increases, sales quantity increases significantly.
D
Revenue increases, sales quantity remains unchanged.
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