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DragIT - Monopoly (2)

The diagram below shows the profit-maximising price and output of a firm facing a downward-sloping demand curve. Show the effect on price and output of a rise in demand by dragging the AR and MR curves. Do this by clicking on the 'MR1' label and dragging it vertically up and down.

Now click on the top of the MC curve and, by making it steeper or flatter, show the effect on Q and P after the AR curve has been dragged to the right.