GENERAL KNOWLEDGE

Detailed explanation-1: -The upper portion of the kinked demand curve is relatively more elastic. The kinked-demand curve is a demand curve comprised of two segments, one that is relatively more elastic, which results if a firm increases its price, and the other that is relatively less elastic, which results if a firm decreases its price.

Detailed explanation-2: -Answer and Explanation: The correct answer is a. is elastic in the upper portion but inelastic in the lower portion. This is because there are fewer sellers in oligopolistic market. Any variation in market price level leads to greatly impact the demand level.

Detailed explanation-3: -The top half of the curve is elastic, because if the prices rises-at any point above the midpoint-expenditure decreases due to a large quantity fall. Therefore, the easiest way to determine an elastic demand curve is to extend the section of the demand curve drawn and identify which axis it intersects.