SOLUTION: 3. Assume an oligopolist confronts two possible demand curves for its own output, as illustrated below. The first ( A ) prevails if other oligopolists don�t match price changes. T

Question 665790: 3. Assume an oligopolist confronts two possible demand curves for its own output, as illustrated below.
The first ( A ) prevails if other oligopolists don�t match price changes. The second ( B ) prevails if rivals do match price changes.
(a) By how much does quantity demanded increase if price is reduced from $11 to $9 and
(i) Rivals match price cut?
(ii) Rivals don�t match price cut?
(b) By how much does quantity demanded change when price is raised from $11 to $13 and
(i) Rivals match price hike? 2 Units
(ii) Rivals don�t match price hike? 0 Units

Answer by julet1332(1) (Show Source): You can put this solution on YOUR website!

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