3-Assume an oligopolist confronts two possible demand curves for its own output, as illustrated below. The first (A) pre

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3 Assume An Oligopolist Confronts Two Possible Demand Curves For Its Own Output As Illustrated Below The First A Pre 1 (93.51 KiB) Viewed 11 times

3-Assume an oligopolist confronts two possible demand curves for its own output, as illustrated below. The first (A) prevails if other price changes. The second (B) prevails if rivals do match price changes. Price (dollars per unit) 19 17 15 13 11 9 5 3 1 Demand A 0 2 4 6 Demand B 8 10 12 14 16 18 20 Quantity (units per period) a. By how much does quantity demanded increase if price is reduced from $11 to $9 and (i) Rivals match the price cut? $ 1 (ii) Rivals don't match the price cut? $ 4 b. By how much does quantity demanded decrease when price is raised from $11 to $13 and (i) Rivals match the price hike? $ 1 (ii) Rivals don't match the price hike? $ 4 c. When combining the relevant parts of demand A and demand B, what kind of demand curve results? demand oligopolists don't match