If an Oligopoly Is Faced with a Kinked-Demand Curve That

question 45

Multiple Choice

If an oligopoly is faced with a kinked-demand curve that is relatively elastic above, and relatively inelastic below, the going price, then it will

• A) increase total revenue by increasing price but lower total revenue by decreasing price.
• B) decrease total revenue by either increasing or decreasing price.
• C) increase total revenue by either increasing or decreasing price.
• D) increase total revenue by decreasing price but lower total revenue by increasing price.

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Definitions:

Unplanned Pregnancy

A pregnancy that was not intended or planned before conception.

Barrier Methods

Forms of contraception that physically block sperm from reaching an egg, such as condoms or diaphragms.

Diaphragm

A dome-shaped, flexible barrier that covers the cervix to prevent sperm from entering the uterus, used as a contraceptive method.

Birth Control Shot

An injectable, hormonal method of birth control that is used to prevent pregnancy for 12 weeks.