Question

Explain your views taking an example of industry facing the problem of price rigidity.

Answer 1

In Oligopoly

Changes in policy prices (according to one) affect others.

The objects in the oligopolite are usually high cross-elasticity (they are a good choice for each other). This means that the change in a good price will affect other good seed demand.

Companies due to the large number of large vendors and their mutual dependencies

Prices will increase which will be a good demand.

After the price drops, there is no unusual profit by changing the price by other firms.