If an individual firm in an oligopolistic market has a typical kinked demand curve, you can conclude that the seller's rivals are:
A) following its price increases but not its price decreases.
B) following its price decreases but not its price increases.
C) following both its price decreases and its price increases.
D) not following either its price decreases or its price increases.

Question

Quizplus · Accepted Answer

The kinked demand curve model for oligopolies suggests that competitors will follow price decreases to avoid losing market share but will not follow price increases, leading to a more elastic demand for price increases and a more inelastic demand for price decreases.

If an Individual Firm in an Oligopolistic Market Has a Typical