单选题 The kinked demand model assumes that at prices above the current price, the demand curve becomes: A. more elastic because competitors will increase their prices. B. less elastic because competitors will not increase their prices. C. more elastic because competitors will not increase their prices.

【正确答案】 C

【答案解析】The kinked demand model of oligopoly behavior assumes that a firm's competitors will not match a price increase, but will match the price of a competitor that offers a lower price. The result is a demand curve that is more elastic above the current price, but less elastic below it.