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. cuts prices, Kittysitters, Inc. will __________; if Kit-N-Sit, Inc. raises prices, Kittysitters, Inc. will __________.

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According to the kinked demand curve theory, if Kit-N-Sit, Inc. cuts prices, Kittysitters, Inc. will also cut prices to match the lower price, in order to prevent losing customers. Conversely, if Kit-N-Sit, Inc. raises prices, Kittysitters, Inc. will leave prices unchanged, since increasing prices will likely result in a loss of customers. Therefore, the most likely scenario is that Kit-N-Sit, Inc. will cut prices and Kittysitters, Inc. will follow suit, resulting in lower prices for cat-sitting services.