The demand curve for an individual seller's product in monopolistic competition is:
A) downward sloping because of product differentiation.
B) horizontal because of the large number of sellers in the market.
C) upward sloping because buyers are willing to pay more for differentiated products.
D) perfectly vertical because sellers cannot easily change the amounts they produce.

Question

Quizplus · Accepted Answer

The demand curve for an individual seller's product in monopolistic competition is downward sloping due to product differentiation, which means that each firm offers a product that is slightly different from its competitors, allowing it to have some control over its pricing.

The Demand Curve for an Individual Seller's Product in Monopolistic