Suppose the market for Hula Hoops is monopolized by a single firm.
a. Draw the initial equilibrium for such a market.
b. Now suppose the demand for Hula Hoops shifts outward slightly. Show that, in general (contrary to the competitive case), it will not be possible to predict the effect of this shift in demand on the market price of Hula Hoops.
c. Consider three possible ways in which the price
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