<p>Demand for <em>existing</em> firms' product shifts in because the entering firms attract some of the users.</p>

CC BY-SA 3.0
2016-07-23T20:23:30.867Z
2016-07-23T23:47:25.837Z
2016-07-23T23:47:25.837Z
dimitriy
<p>In a monopolistic competitive market, demand curves shift in, if more firms enter the market. I can't seem to wrap my head around it. Demand remains the same, supply has increased. Shouldn't entry of more firms change the supply curve, rather than demand curve? </p>

<microeconomics><supply-and-demand><monopoly><competition><monopolistic-competition>
Why does demand curve shift in, in a monopolistic competitive market?
NeoButFemale
# Why does demand curve shift in, in a monopolistic competitive market?

(Asked by: username_0 on 2016-07-23)

In a monopolistic competitive market, demand curves shift in, if more firms enter the market. I can't seem to wrap my head around it. Demand remains the same, supply has increased. Shouldn't entry of more firms change the supply curve, rather than demand curve?

**Tags:** microeconomics, supply-and-demand, monopoly, competition, monopolistic-competition


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## 1 answers

### Answer by username_1 on 2016-07-23. Score: 4 | Accepted answer

Demand for *existing* firms' product shifts in because the entering firms attract some of the users.


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