A monopolist sells 6 units of a product per day at a unit price of $15. if it lowers price to $14, its total revenue increases by $22. this implies that its sales quantity increases by

Question

Evelyn Mejia

Business

24 July, 05:20

A monopolist sells 6 units of a product per day at a unit price of $15. if it lowers price to $14, its total revenue increases by $22. this implies that its sales quantity increases by

+1

Answers (1)

Know the Answer?

Conner Scott · Answer 1

A monopolist sells 6 units of a product per day at a unit price of $15. if it lowers price to $14, its total revenue increases by $22. this implies that its sales quantity increases by: 8 units.

To solve for the original sales amount: (6 units) ($15) = $90

Next find the new unit amount: (8 units) ($14) = $112

The difference between these two is a $22 sales increase which means to have the difference in sales be $22 there were 8 units sold instead of 6 units.