Economics JAMB

The demand curve faced by a monopolist is _____?

A. Positively sloped
B. Vertical
C. downward sloping
D. Negatively Sloped

Correct Answer:

Option C – downward sloping

Explanation

The Demand 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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