What describes the demand curve for a monopolist?Perfectly elasticPerfectly inelasticDownward slopingUpward sloping
Question
What describes the demand curve for a monopolist?Perfectly elasticPerfectly inelasticDownward slopingUpward sloping
Solution
The demand curve for a monopolist is downward sloping. This is because a monopolist can sell more units only by lowering the price, which is the basic law of demand. The demand curve is not perfectly elastic or perfectly inelastic. A perfectly elastic demand curve is horizontal, meaning the quantity demanded changes infinitely with a small change in price, which is not the case for a monopolist. A perfectly inelastic demand curve is vertical, meaning the quantity demanded does not change with a change in price, which is also not the case for a monopolist. The demand curve is also not upward sloping because that would violate the law of demand.
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