A monopoly
A)faces a perfectly elastic demand.
B)ignores the demand curve because it is the only seller.
C)can raise the price it charges only if it decreases the quantity that it sells.
D)can raise the price it charges only if it increases the quantity that it sells.
E)faces a perfectly inelastic demand.

Question

Quizplus · Accepted Answer

A monopoly can raise the price it charges only if it decreases the quantity that it sells because it faces a downward-sloping demand curve, meaning it must lower quantity to increase price.

A Monopoly