Determine equilibrium at changing price

Within this kinked demand curve model, when this firm operated at point a and increased its price from P₂ to P₃ but other firms did not increase their prices, in that cases equilibrium for this firm would move to be: (w) point b. (x) point e. (y) point g. (z) point k.

1945_Kinked Demand Curves.png

Can someone explain/help me with best solution about problem of Economics...

View Complete Question

Related Questions in Microeconomics

Q : Define primary deficit Primary deficit

Primary deficit: Primary deficit is the difference among fiscal deficit and interest payments prepared by the government Primary deficit = Fiscal deficit – Interest payments

Q : Economic what is the Production

what is the Production possibility frontier

Q : Problem of Income Effects on paychecks

I have a problem in economics on Income Effects on paychecks. Please help me in the following question. Whenever prices are increased and your paycheck does not alter the purchasing power of your pay refuses. This is an instance of the: (1) Substituti

Q : Derived Demand for resources I have a

I have a problem in economics on Derived Demand for resources. Please help me in the following question. As demands for the resources ultimately based on consumer’s demands for goods then the demand for labor is: (1) Termed as a derived demand.

Q : Problem on Paradox of Value I have a

I have a problem in economics on Problem on Paradox of Value. Please help me in the following question. Since diamonds are much expensive as relative to water, the: (i) Fundamental needs of people don’t comprise water. (ii) Consumer surplus from consuming the di

Q : Goods and service problem The market

The market system's answer to the fundamental question "Who will get the goods and services?" is essentially: 1) "Those willing and able to pay for them." 2) "Those who physically produced them." 3) "Those who most need them." 4) "Those who get utility from them."

Q : Demand curve of an oligopolist The

The demand curve an oligopolist faces is kinked at the current price when other firms into the industry: (1) face unitary elasticity of demand at their current output levels.(2) will match any price cuts although not price hikes. (3)

Q : Examples of Substitution goods

Illustrations of goods which are close substitutes comprise: (i) Technology and capital. (ii) Motorcycles and helmets. (iii) Chopsticks and forks. (iv) Cowhides and beef. Find out the right answer from the above op

Q : Higher prices of good-Substitution The

The demand for Toyota Corollas will rise in response to: (i) Higher prices for Honda Civics. (ii) The decrease in price of steel. (iii) Honda offering enormous discounts to probable buyers. (iv) Technological progress for designing a car. (v) Higher safety ratings for

Q : Distribution and production for social

Society as entire benefits most when the distribution and production of penicillin corresponds to: (a) point a. (b) point b. (c) point f. (d) point d. (e) point g.

Discover Q & A

Leading Solution Library

Avail More Than 1415088 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1923700
Asked

3,689

Active Tutors

1415088

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment