--%>

Relevant demand of Kinked Demand by changing in price

In this demonstrated figure kinked demand curve model, when a firm at point a raises or lowers its price and the rest of the firms in the industry do similar thing, in that case the relevant demand curve for the firm is: (w) demand curve D0. (x) demand curve D1. (y) demand curve D2. (z) demand curve D3.

241_Kinked Demand Curves.png

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

   Related Questions in Microeconomics

  • Q : Price ceilings and price floors Price

    Price ceilings and price floors: 1) cause surpluses and shortages respectively. 2) make the rationing function of free markets more efficient. 3) interfere with the rationing function of prices. 4) shift demand and supply curves and therefore have no effect on the rat

  • Q : Demand of a competitive firm The

    The competitive firm will demand more labor when: (i) Technological advances support automation. (ii) The price of firm's output increases. (iii) More firms enter in the industry. (iv) The value of marginal product is beneath the wage rate. (v) Worker

  • Q : A monopolist in market power A

    A monopolist: (w) is a price taker in the sale of its product. (x) can charge any price this wishes without reducing profit. (y) is not a price taker into the sale of its product. (z) may or may not be a price taker within the sale of its product.

  • Q : Maintenance of monopoly power

    Maintenance of monopoly power is improved by: (1) natural barriers to entry. (2) large economies of scale. (3) artificial barriers. (4) legal barriers to entry. (5) All of the above. Hello guys I want your advice.

  • Q : Isoquants and isocost lines By using

    By using isoquants and isocost lines, illustrates graphically that rise in y will result in a decline in the quantity demanded of x1 and also illustrates that rise in the price of x1 will result in a reduction in the quantity demanded of x1<

  • Q : Transferred Funds in Financial Markets

    Financial markets are markets in that funds are transferred from: (w) financial investors or institutions which have an excess of available funds to people or firms which have a shortage. (x) people who have a shortage of obtainable funds to people wh

  • Q : Consuming equal successive units of good

    The idea that additional satisfaction ultimately declines from consuming equivalent successive units of any good is the law of: (1) Consumer deficits. (2) Equivalent marginal utilities per dollar. (3) Diminishing marginal utility. (4) Veblen’s inequality. (5) Co

  • Q : Net income after-tax under negative

    Under negative income tax system demonstrated in this figure, where a family of four all along with earned income of price of $15,000 per year would have a net income after-tax, as of: (1) $30,000 per year. (2) $27,500 per year. (3) $

  • Q : Positive relationship by law of supply

    The law of supply defines that there is a positive relationship among: (1) The Price and quantity supplied. (2) Technology and production. (3) Purchases and the accessibility of goods. (4) Supply and the demand it makes.

    Q : Union-Nonunion Wage Differentials I

    I have a problem in economics on Union-Nonunion Wage Differentials. Please help me in the following question. All else equivalent, when employment in an industry raises, the average wage differential gap among union and non-union workers: (1) Narrows.