Question

Suppose a stamp dealer buys the only two existing copies of a stamp at an auction. After the purchase, the dealer goes to the front of the room and burns one of the stamps in front of the shocked audience. What

Answer 1

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(7) The deater believed that the good with no sub will be perfectly price inelastic. That means when there were two of those stamps there was a close substit on that good. Goods with close substitube are more elastic, " price is increased to a point the demand will fall But now there is only I and the dealer holding it has a over can monopoly that good. Thus, he sell it at the maximum peluce possible. esenting Below is a this graph representing Parcelog supply of stamps Quantity