Question

Show that after a shift in the demand​ curve, a​ monopoly's price may remain constant but its output may rise. For​ simplicity, assume that only the slope of the demand curve changes.

​1.) Use the line drawing tool to draw the new demand curve. Label this line

​'D1​'.

​2.) Use the line drawing tool to accurately draw the new marginal revenue curve. Label this line

​'MR1​'.

​3.) Use the point drawing tool to indicate the new price and quantity. Label this line

​'E1​'.

Carefully follow the instructions​ above, and only draw the required objects.

#### Homework Answers

Answer #1

Solution: Graph showing a situation where a change in the slope of the demand curve may lead to same price but increased output.

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