Consider the relationship between monopoly pricing and the price elasticity of demand. If demand is inelastic and a monopolist raises its price, quantity would fall by a percentage than the rise in price, causing profit to . Therefore, a monopolist will produce a quantity at which the demand curve is elastic. 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 O- Inelastic Demand Max TR Price Marginal Revenue 2 3 A QuantityIf demand is inelastic and a monopolist raises its price, quantity would fall by a percentage than the rise in price, causing profit to . Therefore, a monopolist will produce a quan th the demand curve is elastic. larger smaller Use the purple segment ( diamond symbols) to indicate the portion of the dema hat 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).If demand is inelastic and a monopolist raises its price, quantity would fall by a percentage than the rise in price, causing profit to . Therefore, a monopolist will produce a quantity at which the demand curve is elastic. increase ple segment (diamond symbols) to indicate the portion of the demand curve that is inelastic. (Hint: The answer is related to the marginal- decrease curve.) Then use the black point (plus symbol) to show the quantity and price that maximizes total revenue (TR).If demand is inelastic and a monopolist raises its price, quantity would fall by a 7 percentage than the rise in price, causing profit to . Therefore, a monopolist will produce a quantity at which the demand curve is elastic. sometimes Use the purple segment ( diamond symbols) to portion of the demand curve that is inelastic. (Hint: The answer is related to the marginal- revenue (MR) curve.) Then use the black poin always ( to show the quantity and price that maximizes total revenue (TR). never