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Unformatted text preview: As a result of this quantity demanded goes on falling. Yet in the case of Rigid Demand D 1 , with a fall in the demand from 6 to 5 to 4 Total Revenue TR 1 increases from 12 to 20 to 24. With the Flexible Demand condition D 2 the quantity demanded falls sharply from 20 to 8 to 5 causing Total Revenue TR 2 to fall from 40 to 32 to 30. Hence the slope or the degree of flexibility of the demand curve governs the degree of monopoly power....
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- Fall '10