The kinked demand curve model of oligopoly assumes that

Question

TuteeHUB · Accepted Answer

esponse to a price increase is more than the response to a price decrease

TuteeHUB · Answer

esponse to a price increase is less than the response to a price decrease

TuteeHUB · Answer

lassticity of demand is constant regardless of whether price increases or decreases

TuteeHUB · Answer

lasticity of demand is perfectly elastic if price increases and perfectly inelastic if price decreases

1.	The kinked demand curve model of oligopoly assumes that
A.	esponse to a price increase is less than the response to a price decrease
B.	esponse to a price increase is more than the response to a price decrease
C.	lassticity of demand is constant regardless of whether price increases or decreases
D.	lasticity of demand is perfectly elastic if price increases and perfectly inelastic if price decreases
Answer» B. esponse to a price increase is more than the response to a price decrease

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