Question

Can a monopolist sell more of the commodity at a higher price? Explain.

Answer 1

No, a monopolist cannot sell more of the commodity at a higher price. This is because the demand curve faced by a monopolist is downward sloping, which means that to sell more units, the monopolist must reduce the price. If the monopolist increases the price, the quantity demanded will fall, as per the law of demand.

In a monopoly, there is only one seller, but still the monopolist cannot set both the price and the quantity independently. The monopolist has to adjust the price according to how much the consumers are willing to buy. Thus, to increase sales, the price must be lowered, not raised.