The monopolistically competitive seller's demand curve will become more elastic the
A) larger the number of competitors.
B) greater the degree of product differentiation.
C) more significant the barriers to entry.
D) smaller the number of competitors.

Question

Quizplus · Accepted Answer

The demand curve becomes more elastic with a larger number of competitors because consumers have more substitutes to choose from, making them more sensitive to price changes.

The Monopolistically Competitive Seller's Demand Curve Will Become More Elastic