A monopoly faces

a. A change in demand less proportional to a change in price.

b. A change in demand more proportional to a change in price.

c. A change in demand equal to a change in price.

The answer is A.

Monopolies face (a) a change in demand that is less proportional to a change in price.

Commodities provided by monopolies lack close substitutes; thus, their consumers are price inelastic. Consumers have no option but to purchase the goods regardless of the price. Therefore, a change in price is less likely to affect demand, thus making the change less proportional. More often, monopolies intentionally reduce their production to create an artificial shortage, thus increasing their prices and maximizing profits. They also engage in price discrimination, where they charge some consumers more for the same good. This is also a strategy used for profit maximization.