In a market characterized by monopoly, the market demand curve is
A)upward sloping.
B)horizontal.
C)downward sloping.
D)vertical.

Question

Quizplus · Accepted Answer

In a market characterized by monopoly, the monopolist controls the entire market supply and sets the price at which they are willing to sell the product. As a result, the demand curve faced by the monopolist is downward sloping, meaning that as the price increases, the quantity demanded by consumers decreases. This is because consumers are willing to pay less for additional units of the product, and the monopolist must lower the price to sell more units.

In a Market Characterized by Monopoly, the Market Demand Curve