Use the following to answer questions : $$\begin{array}{l}
\text { Table: Prices and Demand }\
\begin{array} { l c }
\hline \begin{array} { l }
\text { Quantity } \
\text { of Hats } \
\text { Demanded }
\end{array} & \begin{array} { c }
\text { Price } \
\text { per Hat }
\end{array} \
\hline 0 & \$ 30 \
1 & 28 \
2 & 26 \
3 & 24 \
4 & 22 \
5 & 20 \
6 & 18 \
7 & 16 \
8 & 14 \
\hline
\end{array}
\end{array}$$
-(Table: Prices and Demand)The Toronto Maple Leafs have a monopoly on Leafs logo hats.The marginal cost of producing a hat is $18.If the Leafs increase the number of hats they sell from 4 to 5,their total revenue changes from _____ to _____.
A) $88;$100
B) $22;$20
C) $88;$80
D) $110;$100

Question

Use the following to answer questions : $$\begin{array}{l}
\text { Table: Prices and Demand }\
\begin{array} { l c } 
\hline \begin{array} { l } 
\text { Quantity } \
\text { of Hats } \
\text { Demanded }
\end{array} & \begin{array} { c } 
\text { Price } \
\text { per Hat }
\end{array} \
\hline 0 & \$ 30 \
1 & 28 \
2 & 26 \
3 & 24 \
4 & 22 \
5 & 20 \
6 & 18 \
7 & 16 \
8 & 14 \
\hline
\end{array}
\end{array}$$
-(Table: Prices and Demand)The Toronto Maple Leafs have a monopoly on Leafs logo hats.The marginal cost of producing a hat is $18.If the Leafs increase the number of hats they sell from 4 to 5,their total revenue changes from _____ to _____.
A) $88;$100
B) $22;$20
C) $88;$80
D) $110;$100

Quizplus · Accepted Answer

The change in total revenue is equal to the change in price multiplied by the change in quantity. In this case, the price decreases from $22 to $20, and the quantity increases from 4 to 5. Therefore, the change in total revenue is (20-22) * (5-4) = -2 * 1 = -2. The new total revenue is $88 - $2 = $86.

Use the Following to Answer Questions -(Table: Prices and Demand)The Toronto Maple Leafs Have a Monopoly