In Figure 13-3, demand curve CAD represents a market in which oligopolists will match the price changes of rivals and demand curve EAB represents a market in which oligopolists will ignore the price changes of rivals. According to the kinked demand model, the relevant demand curve will be

A. demand curve CAB.
B. demand curve CAD.
C. demand curve EAD.
D. demand curve EAB.


Answer: C

Economics

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