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AP® Microeconomics

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Moderate

Effects of Product Differentiation

APMICR-YRPOIE

One effect of product differentiation is that

A

the demand curve for a firm’s product will become less elastic.

B

a firm may sell as much of its product as it chooses at the market price.

C

it insulates a firm from changes in the market price.

D

a firm will increase its market share.

E

the quantity demanded of a product will increase as its price increases.