7) Suppose a monopolist facing a linear demand curve has marginal cost MC and charges monopoly prices Pm. Suppose the demand curve the monopolist faces shifts and becomes less elastic. What will happen to the quantity Pm? MC it will increase it will decrease it will stay the same

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7) Suppose a monopolist facing a linear demand curve has marginal cost MC and charges
monopoly prices Pm. Suppose the demand curve the monopolist faces shifts and becomes less
elastic. What will happen to the quantity ?
Pm
MC
it will increase
it will decrease
it will stay the same
not enough information
Transcribed Image Text:7) Suppose a monopolist facing a linear demand curve has marginal cost MC and charges monopoly prices Pm. Suppose the demand curve the monopolist faces shifts and becomes less elastic. What will happen to the quantity ? Pm MC it will increase it will decrease it will stay the same not enough information
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