Answer to Question 1
When demand is inelastic, quantity demanded changes by a smaller percentage than does the price. As a result, a firm could increase total revenue simply by reducing output and raising price. At the same time, reducing output reduces total production costs. If total revenue rises and total costs fall, profit increases. Therefore, a profit-maximizing monopolist should reduce output and increase price until it is no longer operating along the inelastic portion of the demand curve. Rather, a profit-maximizing monopolist will always operate along the elastic portion of the demand curve.
Answer to Question 2
a
Frequency distribution curve: interpatient variability in drug response.
China has relied on cheap coal to meet its demand for energy
The Kuznets Curve
Analogies for estimating portion size
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Suppose a country imports televisions. The country's supply and demand curves are shown in ...