China is a monopoly supplier of pandas to the world's zoos and rents out a pair of pandas for $1 million a year.Suppose China lowers the price and rents out more pairs of pandas.What would happen to average revenue?
A)The average revenue curve would shift leftward.
B)The average revenue curve would shift rightward.
C)Average revenue would decrease.
D)Average revenue would increase.
E)Average revenue will stay the same.

Question

Quizplus · Accepted Answer

Lowering the price and renting out more pairs of pandas would increase the quantity supplied, leading to a decrease in average revenue as more units are sold at a lower price. This means that each additional pair of pandas rented out would bring in less revenue than before.

China Is a Monopoly Supplier of Pandas to the World's