Question

Kinked demand curve lower segment of demand curve is

Answer 1

It has been observed that many oligopolistic industries exhibit an appreciable degree of price rigidity or stability. In other words, in many oligopolistic industries prices remain sticky or inflexible, that is, there is no tendency on the part of the oligopolists to change the price even if the economic conditions undergo a change.
Many explanations have been given of this price rigidity under oligopoly and most popular explanation is the so-called kinked demand curve hypothesis. The kinked demand curve hypothesis was put forward independently by Paul M. Sweezy, an American economist, and by Hall and Hitch, Oxford economists.