In the model of monopolistic competition, an increase in industry outp

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

ANSWER

A