The more inelastic the demand curve for the monopolist's product, the higher the price that can be charged for the good.

Question

Quizplus · Accepted Answer

When the demand for a product is inelastic, it means that consumers are relatively insensitive to changes in price, and thus the monopolist can charge a higher price without losing many customers. Therefore, the more inelastic the demand curve, the higher the price a monopolist can charge for their product.

The More Inelastic the Demand Curve for the Monopolist's Product