2. Consider the relationship between monopoly pricing and price elasticity of demand. (3.) Explain why a monopolist will never produce a quantity at. which the demand curve is inelastic. (Hint: If demand is inelastic and the rm raises its price, what happens to total revenue and total costs?) (b) Draw a diagram for a monopolist, precisely labeling the portion of the demand curve that is inelastic. (Hint: The answer is related to the marginal-revenue curve.) (c) On your diagram, Show the quantityr and price that maximize total revenue