问题
单项选择题
The kinked demand model assumes that below the current price, the demand curve becomes:（）
A. less elastic because competitors will not decrease their prices.
B. more elastic because competitors will not decrease their prices.
C. less elastic because competitors will decrease their prices.
答案
参考答案：C
解析：
The kinked demand model of oligopoly behavior assumes that a firm’s competitors will not match a price increase, but will match the price of a competitor that offers a lower price. The result is a demand curve that is more elastic above the current price, but less elastic below it.