Mary owns a mobile boutique. Several of her local competitors have recently closed their businesses, which has resulted in a shift in her perceived demand curve. The following tables show her old and her new perceived demand.Original Demand CurvePriceQuantityTC$200$1,000$18100$1,100$16200$2,000$14300$4,000$12400$7,000New Demand CurvePriceQuantityTC$250$1,000$23100$1,100$21200$2,000$19300$4,000$17400$7,000How much does Mary's price change after her competitors leave the market? Question 21 options: decrease by 3 increase by 3 increase by 4 decrease by 4

Profit is maximized by producing at a level where marginal revenue is greater than or equal to…

Answered: Mary owns a mobile boutique. Several of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Mary owns a mobile boutique. Several of her local competitors have recently closed their businesses, which has resulted in a shift in her perceived demand curve. The following tables show her old and her new perceived demand.

Original Demand Curve
Price	Quantity	TC
$20	0	$1,000
$18	100	$1,100
$16	200	$2,000
$14	300	$4,000
$12	400	$7,000
New Demand Curve
Price	Quantity	TC
$25	0	$1,000
$23	100	$1,100
$21	200	$2,000
$19	300	$4,000
$17	400	$7,000

How much does Mary's price change after her competitors leave the market?

Question 21 options:

	decrease by 3
	increase by 3
	increase by 4
	decrease by 4

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