According to the In the News article, "U.S.Sues over Drug's Price Hike," Ovation pharmaceuticals violated federal law in 2006 when it bought a competitor's drug, creating a monopoly for the heart treatment used on premature babies, then raised the price.If a monopoly increases the price of its product, it must believe that it faces a(n)

Question

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A monopoly that increases the price of its product must believe that it faces an inelastic demand curve, meaning that consumers are willing to pay a higher price for the product because there are no close substitutes available.

According to the in the News Article, "U