If a company has a monopoly over a product, the law of supply and demand a. keeps prices low. b. no longer applies. c. dictates that supply will remain high. d. dictates that both supply and demand will remain low.

Question

Sariah Levine

Social Studies

1 September, 02:54

If a company has a monopoly over a product, the law of supply and demand a. keeps prices low. b. no longer applies. c. dictates that supply will remain high. d. dictates that both supply and demand will remain low.

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Andrade · Answer 1

I believe the answer is: B. no longer applies.

The law of supplies and demands dictates that when the price high, the supplies for that product would increase and the demand for that product is decreased. But since in market monopoly only one company provide that product, the customers have no choice but to keep the demand regardless how expensive the company's selling price would be.