I am wondering how the price elasticity of demand (or supply) impacts market efficiency. A more specific question - can we say that in a monopolized market elasticity will be low, and that in a competitive market the competition allows the elasticity of demand to increase? Said another way, a lack of competition places a ceiling on the elasticity of demand, when there is good competition, the elasticity is not bound and reaches the correct market equilibrium value.
Can a regulator use low elasticity as evidence there is a lack of competitiveness?
Can an increase to price elasticity of demand increase consumer surplus while reducing producer surplus?
Would be great to hear some layman thoughts,a s well as references to academic literature (I didn't find much on the topic in my search).