Answer:
A. increase in the price of the product
Explanation:
An increase in price of the product leads to a movement along the demand curve and not a shift of the demand curve.
A decrease in consumer income shifts the demand curve to the left
An increase in the price of a substitute leads to an increase in demand when a shift of the demand curve to the right.
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Answer: In a market served by a monopoly, the marginal cost is $60 and the price is $110. In a perfectly competitive market, the marginal cost is $60. If the marginal cost increased from $60 to $75, the monopoly would raise its price <u>by less than $15</u>, and the price in the perfectly competitive market would <u>increase to $75.</u>
Explanation: The monopolist attends to the market demand, therefore the choice of the monopolist is limited by the market demand. If you set a very high price, you will only sell the amount that the demand you want to buy at that price, so it will only increase by less than $ 15.
In a market of perfect competition the companies are accepting price and will produce until the price is equal to the marginal cost so the price would rise to $ 75.