All else equal, when a monopolist increases its price, revenue will fall because of the lost sales.

Name: All else equal, when a monopolist increases its price, revenue will fall because of the lost sales.
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Question

Quizplus · Accepted Answer

A monopolist can increase its price and still increase revenue if the demand is inelastic, as the higher price compensates for the loss in quantity sold.

All Else Equal, When a Monopolist Increases Its Price, Revenue