The kinked demand curve:
a. applies when competitors match price decreases but not price increases.
b. could apply to market demand in any market structure.
c. applies when competitors match price increases but not price decreases.
d. applies to the price leadership model.
e. applies when competitors act independently.
a
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If you observe that the dollar is appreciating because of a permanent change in the U.S. monetary supply, then the money supply must have:
a. fallen. b. stayed the same. c. risen. d. Not enough information is provided to answer the question.
One reason that consumers and businesses might not act rationally is
A) they may not realize their actions are inconsistent with their goals. B) they do not always value fairness when they make choices. C) it is difficult to obtain enough information about the elasticities of demand and supply. D) consumer tastes change constantly.