Question: ...total revenue would ( increase or decrease) ... cost would (decrease or increase) ..monopolist will (sometimes, always, never) ... inelastic.Please choose the right answer for

...total revenue would ( increase or decrease) ... cost would (decrease or increase) ..monopolist will (sometimes, always, never) ... inelastic.Please choose the right answer for the question

Consider the relationship between monopoly pricing and the price elasticity of demand. If demand is inelastic and a monopolist raises its price, total revenue would V and total cost would V . Therefore, a monopolist will V 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 paint (plus symbol) to show the quantity and price that maximizes total revenue (TR). (93 \\3/ 10 9 00 8 7 Inelastic Demand 6 "I' 5 . 4 Max TR q, 3 e n_ 2 1 0 i -1 -2 -3 -4 -5 'l 0 Quantity

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