Question

kinked demand curve shows..? a)fall in price
b) rise in price
c) stability in price
d) both a and b​

Answer 1

Answer:

c) stability in price

Explanation:

A kinked demand curve occurs when the demand curve is not a straight line but has a different elasticity for higher and lower prices. ... This model of oligopoly suggests that prices are rigid and that firms will face different effects for both increasing price or decreasing price.