The price charged by a profit-maximizing monopolist and the elasticity of demand will be

Question

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The price charged by a profit-maximizing monopolist and the elasticity of demand are inversely related. This means that as the elasticity of demand increases, the monopolist will have to lower its price in order to remain competitive, and as elasticity decreases, the monopolist can increase its price without losing customers. Therefore, the monopolist will charge a higher price when demand is inelastic and a lower price when demand is elastic.

The Price Charged by a Profit-Maximizing Monopolist and the Elasticity