How is elasticity of demand relevant to you when, as a monopolist, you are a price maker?

Open in App

Solution

Monopolist is a price maker, of course. But, he fixes price on the basis of elasticity of demand for his product. Higher the elasticity of demand, lower the price, and vice versa.

Suggest Corrections

Similar questions

make a list of products for which you think demand is price inelastic and price elastic . specify the reason you may think relevant for your analysis

Experts please can I get a help for my economics project .

Topics are -

1) make a list of products for weight you think demand in price inelastic and price elastic . Specifying the reason you may think relevant for your analysis.

2) Develop a hypothetical table at information for coffee that shows quantity demanded at various price and supply of coffee at this price . Draw a demand curve and supply curve and show and equilibrium price at which market is cleared of its supply.

Q. A monopolist fixes price of his product on the basis of elasticity of demand for his product.

Q. Producer's price line shows highest price elasticity of demand in a state of perfect competition. Do you agree?

Q. Monopolist is price maker.

Join BYJU'S Learning Program