A kink in the demand curve facing an oligopolist is caused by:

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A kink in the demand curve facing an oligopolist is caused by the assumption that competitors will follow price reductions but not price increases. This leads to a situation where the oligopolist will face less demand for its product if it raises the price but not gain any advantage by lowering the price. Therefore, the demand curve has a kink at the current price, leading to a situation where the oligopolist is unlikely to change the price. This behavior is often seen in industries where there are a few dominant players with significant market power, and their decisions can influence the whole market.

A Kink in the Demand Curve Facing an Oligopolist Is