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66) You are planning to open a new Italian restaurant in your hometown where there are three otherItalian restaurants. You plan to distinguish your restaurant from your competitors by offeringnorthern Italian cuisine and using locally grown organic produce. What is likely to happen in therestaurant market in your hometown after you open?A) The demand curve facing each restaurant owner becomes more elastic.B) The demand curve facing each restaurant owner shifts to the right.C) While the demand curves facing your competitors becomes more elastic, your demand curvewill be inelastic.D) Your competitors are likely to change their menus to make their products more similar toyours.Answer: A66)Diff: 2Page Ref: 437-438/437-438Topic: Monopolistic Competition in the Long RunLearning Outcome: Micro 15: Discuss the role of differentiation in monopolistic competition in comparison toother market conditionsAACSB: Reflective Thinking67) You have just opened a new Italian restaurant in your hometown where there are three otherItalian restaurants. Your restaurant is doing a brisk business and you attribute your success toyour distinctive northern Italian cuisine using locally grown organic produce. What is likely tohappen to your business in the long run?67)Diff: 2Page Ref: 437-438/437-438