How does the availability of substitute products affect a monopolist's ability to increase prices?

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An increase in substitutes leads to greater pricing power.A decrease in substitutes results in reduced pricing authority.A higher number of substitutes reduces the monopolist's capacity to raise prices.Without substitutes, the monopolist has unlimited pricing control.

Explanation

When there are more alternative products available, a monopolist faces stronger competition, which limits their ability to increase prices. Conversely, fewer substitutes give the monopolist more control over pricing. Therefore, having more substitutes means less power to raise prices.