MONOPOLY 
99 
under competition) and relieved the pressure 
which competition exerts upon individuals, 
compelling them to be alert and act with 
energy. Whether competition may not also 
have its bad side in driving the bare survivors 
to resort in desperation to sharp or positively 
dishonest practices, such as lying advertising 
and thievish adulterating, it is not for us to 
inquire at present. 
It is possible to lay down certain probable 
generalisations which enable one roughly 
to forecast what the effect of monopoly will 
be in different circumstances. When demand 
is highly elastic, a large restriction of supply 
under monopoly is less likely than it is when 
demand is inelastic, because a substantial 
curtailment of supply is needed to lever up 
price appreciably when demand is very 
elastic. When a slight limitation of supply 
sensibly raises price, it is practically certain 
that a shrinkage of output and a considerable 
percentage elevation in price would follow 
the creation of a monopoly, other things being 
equal. The phrase, “ other things being 
equal ” is inserted here because it may be 
essential to the success of a monopoly to 
conciliate the public, which is not likely to 
prove amiable if extortionate charges are 
imposed upon it Another generalisation