The more substitutes there are for a monopolist's product
A) the less elastic is the demand curve.
B) the more elastic is the demand curve.
C) the steeper is the demand curve.
D) the more positively sloped the demand curve becomes.

Question

Quizplus · Accepted Answer

When there are more substitutes for a monopolist's product, the consumers have more alternatives to choose from, making the demand for the monopolist's product more elastic (responsive) to changes in price. This means that small changes in price will result in larger changes in the quantity demanded. Hence, the demand curve will be more elastic (flatter).

The More Substitutes There Are for a Monopolist's Product