Use the following graph for a monopolistically competitive firm to answer the next question. Excess capacity for this firm would be illustrated by the quantity

If consumption has fallen, which of the following could be TRUE?

a. Taxes have fallen. b. Income has fallen. c. Taxes and income have fallen. d. Disposable income has risen.

Firms in monopolistic competition compete by selling similar, but not identical products

Indicate whether the statement is true or false