If one firm raises its price in an industry characterised by firms that are facing kinked demand curves, it is likely that other firms in the industry will:

Question

Quizplus · Accepted Answer

In a kinked demand curve model, if one firm raises its price, other firms are likely to keep their prices unchanged to maintain their market share, as the demand curve is more elastic for price increases.

If One Firm Raises Its Price in an Industry Characterised