why does the demand curve of monopolistic market greater than the monopoly market
Dear student
Under a monopolistic competition, the products of different firms are close substitutes of each other. The products are very much similar to each other and perform the same basic function. This suggests that with a slight increase (or, decrease) in the price of the product, demand of the product would decrease (or, increase) by a large extent. It is due to this fact that the demand curve faced by a seller under monopolistic competition is flatter.
Hence, the monopolistic market demand curve is relatively more elastic.
Regards
Under a monopolistic competition, the products of different firms are close substitutes of each other. The products are very much similar to each other and perform the same basic function. This suggests that with a slight increase (or, decrease) in the price of the product, demand of the product would decrease (or, increase) by a large extent. It is due to this fact that the demand curve faced by a seller under monopolistic competition is flatter.
Hence, the monopolistic market demand curve is relatively more elastic.
Regards