The demand curve for a monopoly is
A) horizontal because the demand is perfectly elastic.
B) downward sloping.
C) vertical because the demand is perfectly inelastic.
D) upward sloping.
E) undefined because it is the only supplier in the market.

Question

Quizplus · Accepted Answer

The demand curve for a monopoly is downward sloping because as the price of the product increases, the quantity demanded by consumers decreases. This is a result of the fact that the monopoly is the sole provider of the product, and consumers have no other options in the market. Therefore, the monopoly can charge a higher price for the product without losing a significant amount of customers.

The Demand Curve for a Monopoly Is