The Demand Curve for a Monopolistically Competitive Firm Slopes Downward

Multiple Choice

The demand curve for a monopolistically competitive firm slopes downward because:

A) the demand for the product drops to zero after a slight price increase.
B) competing firms produce differentiated products.
C) there is a very little brand loyalty towards a single firm's product.
D) customers are not influenced by advertising.
E) buyers are not sensitive to changes in the price of the product.