If a monopolist lowers its price

Question

Quizplus · Accepted Answer

When a monopolist lowers its price, the quantity demanded usually increases. This is because demand is generally more elastic in a monopolistic market, meaning that consumers are more sensitive to changes in price. As a result, a lower price can encourage more people to buy the product or service, resulting in an increase in quantity demanded. However, it is possible that the quantity demanded could remain the same or even decrease if the lower price does not significantly affect consumer behavior.

If a Monopolist Lowers Its Price