The figure below shows the demand curve in a monopoly market.

-Refer to the figure above.This monopolist initially produced 6 units,and now has a new plan to produce 8 units of this good.The quantity effect of this plan on the revenue of the monopolist is ________.
A) $3
B) +$6
C) $1
D) +$7

Question

The figure below shows the demand curve in a monopoly market.
 
-Refer to the figure above.This monopolist initially produced 6 units,and now has a new plan to produce 8 units of this good.The quantity effect of this plan on the revenue of the monopolist is ________.
A) $3 
B) +$6 
C) $1 
D) +$7

Quizplus · Accepted Answer

The quantity effect refers to the change in revenue from selling more units. By increasing production from 6 to 8 units, the monopolist sells 2 additional units. The price at 8 units is $3 per unit, so the quantity effect is 2 units * $3/unit = $6.

The Figure Below Shows the Demand Curve in a Monopoly