Author Question: The demand curve for a monopolistic competitor slopes downward because: a. quantity demanded drops ... (Read 123 times)

jessicacav · **on:** Jun 30, 2018

The demand curve for a monopolistic competitor slopes downward because:
a. quantity demanded drops to zero after a slight price increase.
b. there are close, but not perfect, substitutes for the product.
c. customers have no loyalty to the product.
d. the product is not differentiated in any way from those offered by other sellers.

Question 2

In the foreign exchange market where French francs are traded for Japanese yen, a decrease in the interest rate in France is most likely to cause:
a. a decrease in the yen price of the French franc.
b. an increase in the interest rate in Japan.
c. an increase in the yen price of the French franc.
d. an increase in the demand for French francs.
e. an increase in the supply of yen.