MCQOPTIONS
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				| 1. | 
                                    _ The kinked demand curve model of oligopoly assumes that$? | 
                            
| A. | Response to a price increase is less than the response to a price decrease | 
| B. | Response to a price increase is more than the response to a price decrease | 
| C. | Elassticity of demand is constant regardless of whether price increases or decreases | 
| D. | Elasticity of demand is perfectly elastic if price increases and perfectly inelastic if price decreases | 
| Answer» B. Response to a price increase is more than the response to a price decrease | |