The market demand curve for a monopolist is typically:
A)downward-sloping
B)horizontal
C)unit elastic
D)perfectly elastic at market price

Question

Quizplus · Accepted Answer

The market demand curve for a monopolist is downward-sloping because as the price of the product increases, there is a decrease in the quantity demanded. This is due to the fact that the monopolist is the only supplier of the product and therefore has market power to set the price higher.

The Market Demand Curve for a Monopolist Is Typically