In general, firms selling differentiated products face a demand curve that is
A) upward sloping.
B) horizontal.
C) vertical.
D) downward sloping.

Question

Quizplus · Accepted Answer

Firms selling differentiated products face a downward sloping demand curve because consumers are willing to pay different prices for products that offer different features, qualities, or styles. As the price of a differentiated product increases, the quantity demanded will typically decrease.

In General, Firms Selling Differentiated Products Face a Demand Curve