Refer to the accompanying figure to answer the following questions.

-When a competitive market comes under the control of a monopoly,the quantity changes from
A) D to E
B) E to D
C) C to A
D) B to A
E) A to B

Question

Refer to the accompanying figure to answer the following questions.
 
-When a competitive market comes under the control of a monopoly,the quantity changes from
A) D to E 
B) E to D 
C) C to A 
D) B to A 
E) A to B

Quizplus · Accepted Answer

When a competitive market comes under the control of a monopoly, the quantity produced decreases from E to D, and the price increases from P1 to P2. This is because a monopolist restricts output to increase prices and profits. So, option B is correct.

Refer to the Accompanying Figure to Answer the Following Questions