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

Question

Quizplus · Accepted Answer

Monopolies face a downward sloping demand curve because they are the sole supplier of a particular product and have the power to set prices. As they increase the quantity of the product supplied, they must lower the price to attract additional buyers. Therefore, the demand curve for a monopoly slopes downward from left to right.

The Demand Curve a Monopoly Faces Is