I'm stuck, and I can't understand please help me. Here is the graph in my book. http://img183.imageshack.us/img183/7449/graphyo3.th.jpg [Broken] Now the thing is this: For a monopoly When MR (marginal revenue) is >0, then the demand is elastic. When MR is 0, the demand is unit elastic. When MR is <0 (below the x-axis), the demand is inelastic. Usually when a monopoly is maximizing profits, it is operating on the elastic part of the demand curve. Now this curve is a graph of a monopoly engaged in price discrimination. It is charging different prices from buyers with different demand elasticities. My problem: The graph says that the Demand is Relatively Inelastic. However, the place where Marginal Cost (MC) = MR, is at quantity Q and price P. This is the elastic part of the demand curve, so the demand is elastic. Then how is this relatively Inelastic Please help!