If a monopolist raises its price

Name: If a monopolist raises its price
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When a monopolist raises its price, the quantity demanded typically decreases. This is because the monopolist has market power and no close substitutes, so consumers are forced to either accept the higher price or buy less of the good. This reduction in quantity demanded can potentially lead to a decrease in the monopolist's revenue, as they are no longer selling as much of the good despite charging a higher price.

If a Monopolist Raises Its Price