CBSE Class 12-commerce Answered

Full control over price under monopoly does not mean that the monopolist can sell any amount of good at any price. Once the price is fixed by the monopolists, the consumers will decide the quantum of good to buy.

The market demand curve of the monopoly firm shows that the consumer is willing to buy more at lower prices. On the other hand, when the prices are more the consumer buys lesser the quantity.  There is inverse relationship between price and quantity sold by the monopoly firm. Thus, the demand curve of monopoly firm is a downward sloping curve.