A monopolistic competitor's demand curve tends to be more elastic than a monopolist's demand curve.

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Monopolistic competition implies that there are many competitors offering similar products, so consumers have more options to choose from. As a result, if one firm raises its prices too high, consumers can easily find a substitute among the other similar products available, hence the demand for that firm's product becomes more price elastic. In contrast, monopolies have no close substitute and can therefore exert more control over the market, making their demand curves more inelastic.

A Monopolistic Competitor's Demand Curve Tends to Be More Elastic