You are a consumer of a product that your country imports. There is an increase in demand in the rest of the world for this type of product. You are wondering if this change will be good or bad for you (in your role as consumer of this product). Is it possible that your conclusion depends on whether.
(a) The product is undifferentiated and has a perfectly competitive market (so the standard model of Chapters 2-5 applies) or
(b) The product is differentiated and has a monopolistically competitive market (so the model of this chapter applies)? Explain.