Refer to the above graph.A monopolistically competitive firm was initially successful,but then its rivals started an advertising campaign that undercut its market position.This situation would cause the demand curve for the monopolistically competitive firm to shift from:
A) A to B and become more elastic.
B) A to B and become less elastic.
C) B to A and become more elastic.
D) B to A and become less elastic.

Question

Refer to the above graph.A monopolistically competitive firm was initially successful,but then its rivals started an advertising campaign that undercut its market position.This situation would cause the demand curve for the monopolistically competitive firm to shift from:
A) A to B and become more elastic. 
B) A to B and become less elastic. 
C) B to A and become more elastic. 
D) B to A and become less elastic.

Quizplus · Accepted Answer

The Answer is C

Refer to the Above Graph