The demand curve faced by a monopolist is_____?
ECONOMICS
JAMB 2016
The demand curve faced by a monopolist is_____?
- A. Positively sloped
- B. Vertical
- C. downward sloping
- D. Negatively Sloped
Correct Answer: C. downward sloping
Explanation
TheDemand Curve for a Monopolistic Market is of the same form as a regular Demand Curve. It is downward sloping because of the Substitution Effect, the Income Effect, and the Law of Declining Marginal Utility.
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