Question

In oligopolistic market, if a firm increases price and competitors do not follow then the firm moves along _________ demand segment

Answer 1

Answer:

Downward

Explanation:

If one firm increases price but other competitors do not follow then consumers will switch to the goods produced by other firms since they will be offering lesser price and will avoid buying goods from the firm asking for a higher price. Thus, the demand of the good produced by that firm will go down.

(ACCORDING TO LAW OF DEMAND)