If a monopolistically competitive firm experiences a decrease in demand for its product, resulting in a lower price and reduced economic profit, which of the following is the most likely underlying cause of this change?

A decrease in demand for a monopolistically competitive firm's product can happen for several reasons, such as changes in consumer preferences or the introduction of new competitors. When fewer people want to buy the product, the firm must lower its price to attract customers, which can lead to reduced economic profit. This situation often occurs because consumers might find alternatives that they prefer more, which can shift demand away from the original product. For example, if a new brand of sneakers becomes popular, the demand for an existing brand might decrease, forcing that brand to lower its prices to remain competitive. Overall, the key idea is that changes in consumer preferences or increased competition can directly impact demand, leading to lower prices and profits for the firm.