What is the shape of the demand curve under monopolistic competition?

Moves upwards

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Slopes downwards

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Straight line

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U shaped curve

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Solution

The correct option is B
Slopes downwards

The firm under monopolistic competition has downward sloping demand curve. It means a larger amount of the commodity can be sold by merely lowering its prices.

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Similar questions

Explain why the demand curve facing a firm under monopolistic competition is negatively sloped.

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