According to the Kinked Demand Curve Model, an Oligopolist May

question 227

Multiple Choice

According to the kinked demand curve model, an oligopolist may face

• A)more elastic demand than a monopolistic competitor.
• B)less elastic demand than a monopolistic competitor.
• C)more elastic demand if she raises her price than if she lowers her price.
• D)less elastic demand if she raises her price than if she lowers her price.

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Definitions:

Aftershocks

Smaller earthquakes that occur after a main earthquake and in the same area.

Landslides

The descent of soil, stones, or detritus downhill caused by gravitational pull.

Tsunami

A series of ocean waves with extremely long wavelengths caused by large-scale disturbances such as underwater earthquakes, volcanic eruptions, or landslides.

Richter Magnitude

A scale historically used to quantify the size of earthquakes based on the amplitude of seismic waves, replaced by the more accurate moment magnitude scale for large events.