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


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