To maximize profits, the monopolist should set a higher price in a market with demand.

To maximize profits, the monopolist should set a higher price in a market with a more inelastic demand.

A monopoly is trading products that have no close substitutes. In other words, consumers have no choice but to choose the original product. It maximizes its profit at the output level where the marginal revenue is equal to the marginal cost. Since a monopolist has control over the price of the firm, it can set the price of its product greater than the marginal cost. It sets a higher price the more inelastic the demand. An inelastic demand causes a small change in quantity demanded when there is a change in the price level. This means that the more inelastic the demand, the less effect on the quantity demanded as the price rises.