Question

Which shift in the demand curve is most likely to describe a company in a monopolistically competitive market that begins to spend more on advertising?

Answer 1

Answer:

The demand curve would shift to the right

Explanation:

A monopolistic competition is when there are many buyers and sellers of differentiated goods.

Producers in a monopolistic competition usually engage in advertising.

Advertising increases the awareness of a good or service to consumers which should increase the demand for the good. Increase in demand for the good, would shift the demand curve of the good to the right.

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