Deadweight Loss and Demand Elasticity. Using Figure 25.4 as a starting point, consider a similar product that has the same monopoly price and quantity ($18 and 200 doses), but a more elastic demand....

Deadweight Loss and Demand Elasticity. Using Figure 25.4 as a starting point, consider a similar product that has the same monopoly price and quantity ($18 and 200 doses), but a more elastic demand. The long-run marginal cost is the same ($8).

a. A more elastic demand generates a
 (flatter/ steeper) market demand curve.

b. Draw a graph like the one shown in Figure 25.4 and show the deadweight loss from the monopoly on the product.

c. The deadweight loss is
(larger/smaller) than the loss shown in Figure 25.4 because the change in monopoly is
(larger/smaller).