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    Question

    In a situation where coffee bean prices doubled,

    resulting in the price of coffee doubling as well, consumers may switch to tea, where the prices remained stable. This collective marketplace likely has which type of competition?
    A pure Correct Answer Incorrect Answer
    B cross-market Correct Answer Incorrect Answer
    C oligopoly Correct Answer Incorrect Answer
    D monopolistic Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Monopolistic competition means there are many sellers who compete with product substitutes.

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