GK
BUSINESS ECONOMICS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
The kinked demand curve explains
|
|
Demand flexibility
|
|
|
Demand rigidity
|
|
|
Price flexibility
|
|
|
Price rigidity
|
Explanation:
Detailed explanation-1: -American economist Sweezy came up with the kinked demand curve hypothesis to explain the reason behind this price rigidity under oligopoly. According to the kinked demand curve hypothesis, the demand curve facing an oligopolist has a kink at the level of the prevailing price.
There is 1 question to complete.