The kinked demand curve of oligopolistic market is __________ at upper part and __________ at the lower…
The upper part of the kinked demand curve is more elastic and the lower part is less elastic. Rivals are assumed not to follow a price increase but to follow a price…
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The kinked demand curve of oligopolistic market is __________ at upper part and __________ at the lower part.
Answer and explanation
Correct answer B
The upper part of the kinked demand curve is more elastic and the lower part is less elastic. Rivals are assumed not to follow a price increase but to follow a price reduction, making demand more responsive above the kink.
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Rajasthan SET (RSET)