In a duopoly, each firm faces:
a. a more elastic demand curve if it raises its price.
b. a more elastic demand curve if it lowers its price.
c. a perfectly elastic demand curve.
d. a perfectly inelastic demand curved.
Ans: b. a more elastic demand curve if it lowers its price.
Economics
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(a) debt for nature swaps. (b) poverty. (c) a lack of public transportation. (d) land reform.
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If a decrease in the price of good A causes a decrease in demand for good B, the two goods are
A) substitutes. B) complements. C) normal. D) inferior.
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