Which of the following statements about the elasticity of demand for a monopolist is TRUE?
A) Since a monopolist produces a good with no close substitutes, the price elasticity of demand for the good is zero.
B) A monopolist produces a good with demand that is perfectly inelastic because people can not do without the good.
C) Since every good has some substitute, even if imperfect, the demand for a good produced by a monopolist will not have zero price elasticity.
D) Since the demand curve of a monopolist is downward sloping, the demand for the good must be inelastic.
Answer: C
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