The market demand curve for a monopolist is typically
A)unit price elastic.
B)downward sloping.
C)horizontal.
D)vertical.

Question

Quizplus · Accepted Answer

A monopoly is the only supplier of a good in the market, so it has the power to set the price. The demand curve for a monopolist is downward sloping because as the price increases, the quantity demanded decreases. This is due to the law of demand - as the price of a good increases, consumers are less willing and able to buy it. Thus, the monopolist must lower the price in order to sell more quantity, resulting in a downward slope of the demand curve.

The Market Demand Curve for a Monopolist Is Typically