Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 12 - Pure Monopoly - Review Questions: 5

Answer

b.

Work Step by Step

Elasticity of demand refers to how much the demand curve is subject to change. Thus, if this value is low, the profit will be higher as there will be a smaller change in demand.
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