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Question
According to the kinked demand curve theory, the behavior of firms in an oligopoly creates a demand curve that is ________ at prices above the cartel price and ________ at prices below the cartel price.
a. downward-sloping; upward-sloping
b. more inelastic; upward-sloping
c. perfectly inelastic; downward-sloping
d. more inelastic; more elastic
e. more elastic; more inelastic
Answer
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