The demand curve for a monopoly is horizontal because the demand is perfectly elastic. upward sloping. vertical because the demand is perfectly inelastic. downward sloping. undefined because it is the only supplier in the market.

Question

Herrera

Business

4 April, 07:10

The demand curve for a monopoly is horizontal because the demand is perfectly elastic. upward sloping. vertical because the demand is perfectly inelastic. downward sloping. undefined because it is the only supplier in the market.

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Anton Greene · Answer 1

Downward sloping

Explanation:

According to the law of demand, this law states that there is a inverse relationship between the price of a commodity and the quantity demanded for a commodity. This indicates that as the price of the commodity increases then as a result the quantity demanded for that commodity decreases and as the price of the commodity decreases then as a result the quantity demanded for that commodity increases.

Monopoly refers to the market conditions in which there is only a single firm operating in a whole market.

Hence, due to this inverse relationship between the price and the quantity demanded, the demand curve for a monopoly firm is downward sloping.