Economics A Level (DONEEEEEEE): What does the Kinked Demand Curve assume?

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What does the Kinked Demand Curve assume?

eric_galvao · Accepted Answer

-Price Stability is Visualised by the Kinked Demand Curve
-When a Firm raises its Prices, the other Firms will NOT raise their own
-When a Firm drops its Prices, the other Firms WILL raise their Prices. (Threat of making a Loss too)

Economics A Level (DONEEEEEEE)

What does the Kinked Demand Curve assume?

-Price Stability is Visualised by the Kinked Demand Curve -When a Firm raises its Prices, the other Firms will NOT raise their own -When a Firm drops its Prices, the other Firms WILL raise their Prices. (Threat of making a Loss too)

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