I have a mock company and in a graph I want to show that as I increase the supply, the price isn't really affected up to a certain point? Basically I have a monopoly on bananas and I want to expand my production and show that because I have a monopoly, people will still pay top dollar for them up to a certain point.
Answer:
Why? If you are in a monopoly then you are the only seller. They have to pay the price that you set, true but demand is the "willingness" and "ability" to buy goods. Set it too high then people won't buy bananas. Also remember that monopolies alway will have a max profit at MC=MR.
I guess you could try make the demand more inelastic by having the Demand curve more vertical.
http://spot.colorado.edu/~kaplan/econ201...
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