A monopolist charging high price operates on ____________.

the elastic part of a demand curve

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the inelastic part of a demand curve

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the unitary elastic part of a demand curve

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ignores elasticity of demand altogether

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Solution

The correct option is B the inelastic part of a demand curve
A monopolist can charge high prices only when the demand is inelastic.

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Similar questions

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1. Demand for luxuries is elastic.

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A horizontal straight line demand curve shows zero elasticity of demand.

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A monopolist charging high price operates on ____________.

The correct option is B the inelastic part of a demand curveA monopolist can charge high prices only when the demand is inelastic.

The correct option is B the inelastic part of a demand curve
A monopolist can charge high prices only when the demand is inelastic.