Question content area

Part $1$

Why does a local$$ McDonald's face a$$ downward$-$sloping demand curve for its Quarter$$ Pounder?

Part $2$

In monopolistically competitive$$ markets,

Part $3$

A$.$

changing the price does not affect the quantity sold because

firms sell differentiated productsfirms$$sell$$differentiated$$products$.$

B$.$

changing the price does not affect the quantity sold because

firms have market powerfirms$$have$$market$$power$.$

C$.$

changing the price affects the quantity sold because firms are price takers.

D$.$

changing the price affects the quantity sold because firms sell differentiated products.

E$.$

changing the price affects the quantity sold because

there are substantial barriers to entrythere$$are$$substantial$$barriers$$to$$entry$.$