If a monopolist were to produce in the inelastic segment of its demand curve
A) total revenue would be at a maximum.
B) total revenue would be at a minimum.
C) the firm would maximize profits.
D) a further drop in the price will change quantity demanded less than proportionately.

Question

Quizplus · Accepted Answer

In the inelastic segment of the demand curve, a decrease in price leads to a less than proportionate increase in quantity demanded, meaning that consumers are not very responsive to price changes in this range.

If a Monopolist Were to Produce in the Inelastic Segment