The ________ Demand Curve Theory States That Oligopolists Tend to Respond

question 35

Multiple Choice

The ________ demand curve theory states that oligopolists tend to respond aggressively to the price cuts of rivals,but largely ignore price increases.

• A) downward-sloping
• B) perfectly elastic
• C) kinked
• D) upward-sloping
• E) jagged

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Definitions:

Product-line Pricing

A pricing strategy where different products within the same category are priced differently based on features, costs, or target market segments.

Price Differentials

The variation in the price of goods or services when compared across different markets, sellers, or buying conditions.

Price-insensitive Product

A product for which demand does not significantly change with a price increase or decrease, often due to its unique value or lack of alternatives.

Product-line Pricing

A marketing strategy that manages the prices of multiple products within the same product range.