Figure 15-2

-Refer to Figure 15-2.Which panel could represent the demand curve facing a local cable television provider if that firm in a monopolist?
A) Panel A
B) Panel B
C) Panel C
D) Panel D

Question

Figure 15-2

-Refer to Figure 15-2.Which panel could represent the demand curve facing a local cable television provider if that firm in a monopolist?
A) Panel A 
B) Panel B 
C) Panel C 
D) Panel D

Quizplus · Accepted Answer

Panel B shows a downward sloping demand curve, indicating that as the price increases, the quantity demanded decreases. This is typical of a monopolist's demand curve, as they have market power and can decrease quantity to increase price. The other panels do not show a clear downward slope.

Figure 15-2 -Refer to Figure 15-2.Which Panel Could Represent the Demand Curve