हिंदी

In Sweezy's model, why is demand elastic above the kink price?

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प्रश्न

In Sweezy's model, why is demand elastic above the kink price?

विकल्प

  • Rivals match price increases

  • Rivals do not follow price hikes

  • Products are not substitutes

  • Costs always rise

MCQ
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उत्तर

Rivals do not follow price hikes

Explanation: 

Rivals ignore price hikes, causing a large sales drop for the firm.

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