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The monopolist wants a price-quantity combination to fall in the Elastic section of its demand curve, where a lower price means greater total revenue.
The relationship between the cost of an item or service and the quantity demanded over a specific time period is represented graphically by the demand curve. The price and quantity demanded are often represented with the price on the left vertical axis and the horizontal axis, respectively.
When firms decide on prices, the demand curve can be a crucial instrument. This is so that the demand curve can display both the price at which consumer response declines and the price at which the greatest demand is elicited.
The demand curve changes the elasticity. Where price elasticity exceeds one (where demand is elastic) and falls below one (where demand is inelastic), is known as the elastic zone of demand. A decrease in price boosts overall revenue in the elastic region, while the opposite is true for the inelastic sector.
To know more about demand curve refer to: https://brainly.com/question/13131242
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