A monopolistically competitive firm can raise its price somewhat without fear of great change in unit sales because

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In monopolistic competition, firms differentiate their products from competitors through branding, quality, design, etc. This creates some brand loyalty among consumers, making them willing to pay a slightly higher price for a product they perceive to be different from others. As a result, a firm in monopolistic competition can raise its price somewhat without fear of losing all its customers. However, the demand for its product is not typically very price-elastic, as in Option A, and its demand curve is not horizontal, as in Option B.

A Monopolistically Competitive Firm Can Raise Its Price Somewhat Without