If demand is inelastic, total revenue would increase when a monopolist (lower/raises)its price. As a result, total cost would (decrease/increase). Therefore, a monopolist will(sometimes/always/ never) produce a quantity at which the demand curve is inelastic.

Use the purple segment (diamond symbols) to indicate the portion of the demand curve that is inelastic. (Hint: The answer is related to the marginal-revenue (MR) curve.) Then use the black point (plus symbol) to show the quantity and price that maximizes total revenue (TR).

10 Demand 9 Inelastic Demand 8 Max TR Price 0 Marginal Revenue -4 -5 O 2 3 4 5 7 9 10 Amqueno