Advertisements
Advertisements
Question
Which of the following statements is true?
Options
In monopolistic competition, the demand curve is relatively elastic
In monopolistic competition, the demand curve is relatively inelastic.
In monopolistic competition, the demand curve is perfectly elastic.
In a monopolistic competition, the demand curve is perfectly inelastic
MCQ
Solution
In monopolistic competition, the demand curve is relatively elastic
Explanation:
The demand curve is more elastic than monopoly but not perfectly elastic in monopolistic competition because close substitutes are available in the market.
shaalaa.com
Is there an error in this question or solution?
