A downward-sloping demand curve that incorporates the firm's expectations of what other firms will do is called a
A)compensated demand curve.
B)independent demand curve.
C)uncompensated demand curve.
D)consumer's demand curve.
E)strategic demand curve.

Question

Quizplus · Accepted Answer

A downward-sloping demand curve that incorporates the firm's expectations of what other firms will do is called a strategic demand curve. A strategic demand curve takes into account the anticipated reactions of other firms in the market when the firm changes its price or output.

A Downward-Sloping Demand Curve That Incorporates the Firm's Expectations of What