Explain why the demand curve facing a firm unde monopolistic competiti

1.	Explain why the demand curve facing a firm unde monopolistic competition is negatively sloped.
Answer» <html><body><p></p>Solution :The demand curve of a firm under monopolistic <a href="https://interviewquestions.tuteehub.com/tag/competition-423521" style="font-weight:bold;" target="_blank" title="Click to know more about COMPETITION">COMPETITION</a> is <a href="https://interviewquestions.tuteehub.com/tag/negatively-7699946" style="font-weight:bold;" target="_blank" title="Click to know more about NEGATIVELY">NEGATIVELY</a> sloped because of product differentiation. The product of the <a href="https://interviewquestions.tuteehub.com/tag/sellers-1200267" style="font-weight:bold;" target="_blank" title="Click to know more about SELLERS">SELLERS</a> are <a href="https://interviewquestions.tuteehub.com/tag/differentiated-431924" style="font-weight:bold;" target="_blank" title="Click to know more about DIFFERENTIATED">DIFFERENTIATED</a> but close substitutes of one <a href="https://interviewquestions.tuteehub.com/tag/another-876628" style="font-weight:bold;" target="_blank" title="Click to know more about ANOTHER">ANOTHER</a>. It can sell more only be reducing the price.</body></html>

Explain why the demand curve facing a firm unde monopolistic competition is negatively sloped.