If buyers of a monopolistically competitive product feel the products of different sellers are strongly differentiated, then the demand for each seller's product is
A)perfectly inelastic.
B)perfectly elastic.
C)relatively inelastic.
D)relatively elastic.

Question

Quizplus · Accepted Answer

When products are strongly differentiated, consumers perceive them as unique, leading to less sensitivity to price changes, making the demand relatively inelastic.

If Buyers of a Monopolistically Competitive Product Feel the Products