Efficient Kinked Demand Curve Homework Help of myhomeworkhelp.com
If you are student of Economics then you must know how important the subject of Oligopoly is. With the help of this subject, a student can make effective decision which will help them in the long run. So, it is very much necessary that you have a clear conception about each and every topic of this subject which is taught in educational institutions like school and colleges. So, if you are having problem with Kinked Demand Curve, then you can rest assure as we at myhomeworkhelp.com can help you with this topic.
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About Kinked Demand Curve
In very simple words, this topic can be defined as a bend which is there in a demand curve which is standard in nature. This bend is a result of the decrease of price by competitors in order to make it match each other. But here it is important to mention that the price will not be raised in order for achievement of the same effect. The thing is that if a business happens to reduce its price to a certain level then in such a case any fluctuation which will raise the price will result in the loosing of customer by that firm.
What is the use for it?
Our Kinked Demand Curve Assignment Help team has explained that in this kind of demand curve there are two segments:
- One is relatively more elastic, and it happens when a firm decides to increase the price.
- The second one is relatively less elastic, and it happens when a firm decides to decrease the price.
The name kinked demand curve is given as these above-mentioned two segments meet at a corner or to be exact, “kink”. With its help you can get the insight into the reason why markets which are considered as oligopoly tend to make sure that prices are relatively constant.
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