A monopolist's demand curve is _____
A)horizontal.
B)vertical.
C)downward sloping.
D)upward sloping.
E)different from the market demand curve.

Question

Quizplus · Accepted Answer

A monopolist's demand curve is downward sloping because the monopolist has market power and can influence the price of its product by adjusting its output level. As the price increases, the quantity demanded decreases, hence the downward slope of the demand curve. The demand curve for a monopolist is different from the market demand curve because the monopolist is the sole producer in the market.

A Monopolist's Demand Curve Is _____