What does the kinked demand curve model of oligopoly assume about the elasticity of demand?

1. A Option A: Demand in response to a price increase is more elastic than in response to a price decrease
2. B Option B: Demand is perfectly elastic if price increases and perfectly inelastic if price decreases
3. C Option C: It is constant regardless of whether price increases or decreases
4. D Option D: Demand in response to a price increase is less elastic than in response to a price decrease

Answer checked 11 October 2026 · How we write and check questions