Kit-N-Sit, Inc

Kit-N-Sit, Inc. and Kittysitters, Inc. are two cat-sitting services in Kent, Ohio. There are no other cat-sitting services so the market is considered to be a duopoly. According to the kinked demand curve theory, if Kit-N-Sit, Inc. increases prices, Kittysitters, Inc. will:

A) do nothing and leave prices unchanged.
B) sue Kit-N-Sit, Inc. for monetary damages in court.
C) respond aggressively by increasing prices.
D) split the company into two different companies: Kit, Inc. and Sit, Inc.
E) respond aggressively by cutting prices.