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# Monopoly Effects on Market Price

## Definition

The ability of monopolists to keep markets understocked and sell commodities above natural price by never fully supplying effectual demand, thereby raising wages and profits above natural rates.

## Source Chapter

Book I, Chapter 7

## Context

Compared to trade secrets, with the observation that "the monopolists, by keeping the market constantly understocked by never fully supplying the effectual demand, sell their commodities much above the natural price."

## Economic Domain

Regulation

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