How does the demand curve in monopolistic competition differ from that in perfect competition?

• A. In monopolistic competition, the demand curve is horizontal, while in perfect competition, it is downward sloping.
• B. In monopolistic competition, the demand curve is downward sloping, while in perfect competition, it is horizontal.
• C. In monopolistic competition, the demand curve is upward sloping, while in perfect competition, it is downward sloping.
• D. In monopolistic competition, the demand curve is vertical, while in perfect competition, it is horizontal.

Answer: (B)