Question

If a monopolist raises its price:________

a) the quantity demanded decreases.
b) it raises the barriers to entry.
c) the quantity demanded increases.
d) the quantity demanded remains the same.

Answer 1

a) the quantity demanded decreases

Step-by-step explanation:

As we know that'

A monopolist creates a monopoly in the market as the firm is a sole producer for the entire market due to which it charges high prices plus it is a price taker that means it offers cheap quality products at a lesser price

But if monopolist increased its price so the quantity demanded declines as the purchasing power reduced

Therefore option a is correct