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Since the start of last year, you observe that the price of Monopoly Inc's products has increased. Which of the following scenarios is inconsistent with this fact?
A. Demand became less elastic and marginal costs declined.
B. Demand became less elastic and marginal costs increased.
C. Demand became more elastic and marginal costs declined.
D. Demand became more elasitc and marginal costs increased.
Please explain what's the relationship between Monopoly's price, demand elasticity and marginal cost, and how to work on similar questions.
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