In a situation where coffee bean prices doubled,resulting in the price of coffee doubling as well,consumers may switch to tea,where the prices remained stable.This collective marketplace likely has which type of competition?
A)pure
B)cross-market
C)oligopoly
D)monopolistic

Question

Quizplus · Accepted Answer

The situation described suggests that there are multiple sellers of coffee (implied by the fact that the price increased when the cost of beans increased) and that there are close substitutes available (tea) that consumers can switch to. This is indicative of monopolistic competition, where there are many firms selling differentiated products in a market with relatively low barriers to entry.

In a Situation Where Coffee Bean Prices Doubled,resulting in the Price