A monopolist faces
A)a perfectly elastic demand curve.
B)a perfectly inelastic demand curve.
C)a horizontal demand curve.
D)a downward-sloping demand curve.

Question

Quizplus · Accepted Answer

A monopolist faces a downward-sloping demand curve, meaning that as the price of the good or service increase, the quantity demanded decreases. This is different from a perfectly elastic or inelastic demand curve, which would result in the monopolist having little to no control over the price of their product. A horizontal demand curve would suggest a competitive market, which a monopolist is not.

A Monopolist Faces