Suppose, you operate in a monopoly environment and you set my price in order to achieve maximum profits

a. Is my demand elastic, unitary elastic, or inelastic?

The demand is inelastic as the monopolist is able to influence and set the price and maximize the profits.

b. Does your answer change if you were in a monopolistic market?

The producer can maximize the profits in case of inelastic demand. In case the demand is elastic, the consumer would change the demand.

c. What happens to the elasticity when you go from a monopolistic market to a monopolistic competitive one?

The elasticity increases as one moves from a monopoly market to monopolistically competitive market as the purchase options increases for the consumer.

When a new technology is launched, the firm enjoys the monopoly status and charges a premium price for the same. As technology penetrates the market and other firms emulate the technology, a lower-priced version of the product is available. The purchase options increases for the consumer and the demand becomes elastic.