In the Kinked Demand Curve Model,the Demand Curve Is ________

question 2

Multiple Choice

In the kinked demand curve model,the demand curve is ________ for price increases and ________ for price decreases.

• A)unit elastic; relatively elastic
• B)relatively inelastic; relatively elastic
• C)relatively elastic; relatively inelastic
• D)perfectly elastic; perfectly inelastic

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Definitions:

Presentment

The act of presenting an instrument to the party liable on the instrument to collect payment; the act of presenting an instrument to a drawee for acceptance.

Negotiable

Referring to instruments or documents whose rights or monetary value can be transferred to another individual through endorsement or delivery.

Nature

The phenomena of the physical world collectively, including plants, animals, the landscape, and other features and products of the earth, as opposed to humans or human creations.

Instrument

A formal legal document that serves as evidence of a fact or a right, and can include negotiable instruments in financial transactions.