Q
The kinked demand curve model of oligopoly assumes the elasticity of demand ?
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A
A. In response to a price increase is less elastic than the elasticity of demand in response to a price decrease
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B
B. Is perfectly elastic if price increases and perfectly inelastic if price decreases
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C
C. Is constant regardless of whether price increase of decrease.
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D
D. In response to a price increases is more elastic than the elasticity of demand in response to a price decrease
Correct Answer:
D. D. In response to a price increases is more elastic than the elasticity of demand in response to a price decrease
