The Demand Curve Faced by a Pure Monopolist

question 370

Multiple Choice

The demand curve faced by a pure monopolist

• A) is the same as its marginal revenue curve.
• B) is perfectly inelastic.
• C) lies below the marginal revenue curve.
• D) is the market demand curve.

---

Definitions:

Income Elasticity of Demand

Income elasticity of demand measures how the quantity demanded of a good or service changes in response to a change in consumers' income.

Quantity Demanded

In economics, the total amount of a good or service that consumers are willing and able to purchase at a given price.

Income

The financial gain received by an individual or household, usually derived from work, investments, or other sources, over a period.

Own Price Elasticity

The responsiveness of the quantity demanded of a good to a change in its own price, holding other factors constant.