Question

For a monopoly, what is the price effect? Question 4 options: a) The change in total revenue caused by the new customers now paying the old price. b) The change in marginal revenue caused by the new customers now paying the new price. c) The change in total revenue caused by the new customers now paying the new price. d) The change in total revenue caused by old customers now paying the new price. e) The change in marginal revenue caused by old customers now paying the new price.

Answer 1

d) The change in total revenue caused by old customers now paying the new price

Step-by-step explanation:

The price effect is the effect which arises in the demand of consumers due to the change in the price

if the price decreases the old consumer will pay the lesser prices and if the price increases the old consumer will pay the new prices

This is we called the price effect

Therefore, the correct option is d