1670EconomicsMedium
The kinked demand curve model of oligopoly assumes the elasticity of demand?
Ain response to a price increase is less elastic than the elasticity of demand in response to a price decrease
Bin response to a price increases is more elastic than the elasticity of demand in response to a price decrease
Cis perfectly elastic if price increases and perfectly inelastic if price decreases
Dis constant regardless of whether price increase of decrease.
Correct answer
B. in response to a price increases is more elastic than the elasticity of demand in response to a price decrease
Explanation
The correct answer is in response to a price increases is more elastic than the elasticity of demand in response to a price decrease.