In the Model of Monopolistic Competition, an Increase in Industry

question 50

Multiple Choice

In the model of monopolistic competition, an increase in industry output will cause individual firms' demand curves to become ________, which will ________ demand for higher-priced goods and ________ demand for lower-priced goods.

• A) steeper; reduce; increase
• B) steeper; increase; reduce
• C) horizontal; reduce; reduce
• D) flatter; increase; reduce
• E) flatter; reduce; increase

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