The question

b) Suppose the inverse demand curve is given by p = 10 - ay where p is price and y is output demanded. Consider a price change from p to p and a corresponding change in demand from y to y . Using the notation Ap = p -p and Ay - y calculate the value of Ay c) Given your answer to (a) and (b) above suppose that a = 2 what is the maximum level of output that the monopolist would produce