Your company has a monopoly on a wristwatch digital cameras. Market research has shown that demand for these cameras is P(Q, z) = z(48−2Q). Where z is the quality of the camera measured in megapixels. The cost of designing a camera with z megapixels is F(z) = 18z 2 , but once designed, there is no marginal cost to producing the cameras. Only one type of camera can be produced
1. Suppose that, for a given quality, consumers were more price elastic when it came to cameras. Given the above, explain how this would change the quality of cameras produced by the monopolist.