Elasticity and Revenue    Since we said a monopolist should always increase price if demand is inelastic, the obvious question is: Why do any products have prices low enough that demand is inelastic?

   There are few true monopolies in the US (in part because of anti-trust legislation). If a firm raises prices and its competitors don't, then it will find that sales fall more than the demand curve would have suggested, and profits will fall. If this were not the case, there would be no products with inelastic demand. (This is covered in more detail in the sections on Monopoly and Oligopoly.)

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