In the context of oligopoly, the kinked demand curve hypothesis is des

1.	In the context of oligopoly, the kinked demand curve hypothesis is designed to explain
Answer» PRICE RIGIDITY In the CONTEXT of oligopoly, the kinked demand curve hypothesis is designed to explain Price rigidity. The curve is more elastic above the kink and less elastic below it. This means that the RESPONSE to a price increase is less than the response to a price decrease.

In the context of oligopoly, the kinked demand curve hypothesis is designed to explain

Answer»

In the CONTEXT of oligopoly, the kinked demand curve hypothesis is designed to explain Price rigidity. The curve is more elastic above the kink and less elastic below it. This means that the RESPONSE to a price increase is less than the response to a price decrease.

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In the context of oligopoly, the kinked demand curve hypothesis is designed to explain

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