Refer to the accompanying table, which represents the costs and production for a monopolist, to answer the questions that follow.

-As production increases,the price consumers are willing to pay for the good:
A) increases and then decreases.
B) decreases and then increases.
C) stays the same.
D) increases.
E) decreases.

Question

Refer to the accompanying table, which represents the costs and production for a monopolist, to answer the questions that follow.
 
-As production increases,the price consumers are willing to pay for the good:
A) increases and then decreases. 
B) decreases and then increases. 
C) stays the same. 
D) increases. 
E) decreases.

Quizplus · Accepted Answer

As production increases, the supply of the good increases, which leads to a decrease in the price consumers are willing to pay for the good.

Refer to the Accompanying Table, Which Represents the Costs and Production