Question

Daisys lemonade store is a monopoly in her neighbourhood. On a hot summer day, her small stall in front of her house is lined with customers, eager to quench their thirst with her delicious homemade lemonade 1. Daisy is a price taker 2. Daisy has a downward sloping demand curve 3. Daisy has a horizontal demand curve Which of the above statements are true Only 1 is true. Only 2 is true. Both 1 and 2 are true. Both 2 and 3 are true. O All three are true

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Answer #1

only 2 is true.

Daisy has a downward sloping demand curve (this is a characteristic of a monopoly)

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