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