1. 4. You run a company that has a monopoly on a new drug that treats arthritis. The price is $10 per dose, and you sell 10 million doses per day. Market research shows that a reduction of price by

$2 will increase sales to 11 million doses per day. On a graph, show the price effect (loss of revenue due to the lower price) and quantity effect (increase in revenue due to higher quantity). Find the area of each of these rectangles. Based on these calculations, what is the effect of cutting price on total revenue: increase, decrease, or no change?