Compared to a competitive market, a single-price monopoly ...

[appyboo]

Compared to a competitive market, a single-price monopoly decreases the consumer surplus and increases the economic profit. Is the previous statement correct or incorrect? Explain your answer.
 
  What will be an ideal response?

Question 2

What relationship is shown by a demand curve?
 
  What will be an ideal response?

[sarahccccc]

Answer to Question 1

The statement is correct. A single-price monopoly produces less than a competitive market and sets a higher price, both of which decrease the consumer surplus but increase the economic profit.

Answer to Question 2

The demand curve shows the relationship between price and quantity demanded. Since price and quantity demanded are inversely related, the demand curve is downward sloping.