Why demand curve is more elastic
Why demand curve is more elastic under monopolistic competition as compare to monopoly.
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The elasticity of demand is high whenever the product has close substitutes and that elasticity of demand tends to low whenever the product does not encompass close substitutes as we know in monopolistic competition there is a large number of close substitutes whereas in monopoly there is no close substitutes therefore the demand curve beneath monopolistic competition is much more elastic than beneath monopoly.
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For a purely competitive industry a market-period supply curve would be: (i) curve A. (ii) curve B. (iii) curve C. (iv) curve D. (v) curve E. Discover Q & A Leading Solution Library Avail More Than 1426490 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1923696 Asked 3,689 Active Tutors 1426490 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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