The demand curve facing a monopolist is
A) downward sloping.
B) upward sloping.
C) horizontal.
D) vertical.

Question

Quizplus · Accepted Answer

The demand curve facing a monopolist is downward sloping, which means that as the price of the good or service increases, the quantity demanded decreases. This is because the monopolist is the only producer of the good or service, and consumers have no choice but to buy from them at the price they set. As such, the monopolist can charge a higher price and sell fewer units, or lower the price to sell more units, but they cannot set the price and quantity independently from each other like a perfectly competitive market.

The Demand Curve Facing a Monopolist Is