To maximize its profit, a monopoly should choose a price where ...

[B]

To maximize its profit, a monopoly should choose a price where demand is:
 a. elastic.
  b. inelastic.
  c. unitary elastic.
  d. vertical.

Question 2

If Mr. Smith thinks the last dollar spent on shirts yields less satisfaction than the last dollar spent on cola, and Smith is a utility-maximizing consumer, he should:
 a. decrease his spending on cola.
  b. decrease his spending on cola and increase his spending on shirts.
  c. increase his spending on shirts.
  d. increase his spending on cola and decrease his spending on shirts.

[akudia]

Answer to Question 1

a

Answer to Question 2

d