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Explain the Significance of Gatekeepers

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Explain the significance of gatekeepers.


Definitions:

Kinked Demand Curve

A demand curve in oligopolistic market structures characterized by a distinct bend or kink at the current price; it reflects that price increases by one firm will not be followed by others, while price decreases will be.

Price Cut

A reduction in the selling price of products or services, often used as a strategy to increase consumer demand or compete more effectively.

Elasticity

A measure used in economics to show how much the quantity demanded of a good responds to a change in the price of that good, expressed as a percentage.

Kinked-Demand Curve

A model that suggests prices tend to be rigid or stable because businesses will follow a strategy of matching price increases but not price decreases by competitors.

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