Suppose a monopolist lowers the price of its good, this would cause consumers to:
A)buy more
B)buy less
C)continue to buy the same amount
D)buy more or less, depending on elasticity of demand

Question

Quizplus · Accepted Answer

When a monopolist lowers the price of its good, consumers tend to buy more of the good. This is because as per the law of demand, there is an inverse relationship between price and quantity demanded. Thus, when the price goes down, consumers are willing and able to buy more of the good.

Suppose a Monopolist Lowers the Price of Its Good, This