Consider the relationship between monopoly pricing and the price elasticity of demand. if demand is inelastic and a monopolist raises its price, quantity would fall by a percentage than the rise in price, causing profit to . therefore, a monopolist will produce a quantity at which the demand curve is elastic.
That statement is true. This usually happen for the commodities that are very crucial to our everyday lives, such as food, water, or oil. No matter how much the price of these commodities increases, the demand for them will always remain constant.
