问题


There is a single choice question about high school microeconomics. Answer the question by replying A, B, C or D.
Question: Which of the following illustrates the demand curve facing an oligopolist when rival firms follow a price decrease but not a price increase?
A. Perfectly horizontal demand curve.
B. Highly inelastic demand curve.
C. Highly elastic demand curve.
D. A demand curve consisting of two discontinuous segments.
Answer:

答案

模型 模型答案 正确答案
金声玉亮2.0

The correct answer is D. A demand curve consisting of two discontinuous segments.

In an oligopolistic market, if rival firms follow a price decrease but not a price increase, the demand curve facing the oligopolist will be kinked. This means that the demand curve will have two discontinuous segments: one segment that is relatively elastic (responsive to price changes) at prices above the kink, and another segment that is relatively inelastic (unresponsive to price changes) at prices below the kink.

The kink occurs at the price level where the rival firms will follow a price decrease but not a price increase. At prices above the kink, the oligopolist faces a relatively elastic demand curve because a small price increase will lead to a large decrease in quantity demanded, as consumers switch to rival firms. At prices below the kink, the oligopolist faces a relatively inelastic demand curve because a small price decrease will not lead to a large increase in quantity demanded, as rival firms will not follow the price decrease.

Therefore, the demand curve facing the oligopolist will consist of two discontinuous segments, with a kink at the price level where the rival firms' behavior changes.
D
deepseekr1

The question revolves around the demand curve in an oligopoly where rivals match price decreases but not increases. This scenario aligns with the **kinked demand curve model**. In this model:

- If a firm **raises prices**, rivals do not follow, making demand **elastic** (consumers switch to competitors, leading to a significant drop in quantity demanded).
- If a firm **lowers prices**, rivals match the decrease, making demand **inelastic** (the firm gains few additional customers, as competitors also lower prices).

This creates a demand curve with **two distinct segments** (elastic above the kink and inelastic below), resulting in a discontinuity at the kink.

**Analysis of options**:
- **A (Perfectly horizontal)**: Incorrect, as this describes perfect competition, not oligopolistic interdependence.
- **B (Highly inelastic)**: Incorrect, as demand is only inelastic below the kink, not universally.
- **C (Highly elastic)**: Incorrect, as elasticity varies depending on price direction.
- **D (Two discontinuous segments)**: Correct, as the kinked demand curve has two distinct elasticities separated by a discontinuity.

**Answer**: D
D
gpto1 D D
GPT-4o D. A demand curve consisting of two discontinuous segments. D
llama3.1-70B-Instruct

D
D
llama3.1-405B-Instruct

The correct answer is D. A demand curve consisting of two discontinuous segments.

In an oligopolistic market, if rival firms follow a price decrease but not a price increase, the demand curve facing the oligopolist will be kinked. This means that the demand curve will have two discontinuous segments: one segment that is relatively elastic (responsive to price changes) at prices above the kink, and another segment that is relatively inelastic (unresponsive to price changes) at prices below the kink.

The kink occurs at the price level where the rival firms will follow a price decrease but not a price increase. At prices above the kink, the oligopolist faces a relatively elastic demand curve because a small price increase will lead to a large decrease in quantity demanded, as consumers switch to rival firms. At prices below the kink, the oligopolist faces a relatively inelastic demand curve because a small price decrease will not lead to a large increase in quantity demanded, as rival firms will not follow the price decrease.

Therefore, the demand curve facing the oligopolist will consist of two discontinuous segments, with a kink at the price level where the rival firms' behavior changes.
D
DeepSeek-Coder-V2 D. A demand curve consisting of two discontinuous segments. D
Qwen2-72B-Instruct D. A demand curve consisting of two discontinuous segments. D
baichuan4 D D
doubao D

In an oligopoly where rivals follow a price decrease but not a price increase, the demand curve facing an oligopolist consists of two discontinuous segments. When the oligopolist raises the price, demand is relatively inelastic as rivals do not follow, but when the oligopolist lowers the price, demand is highly elastic as rivals follow suit, resulting in such a unique demand curve.
D
minimax D. A demand curve consisting of two discontinuous segments. D
kimi D. A demand curve consisting of two discontinuous segments.

In an oligopolistic market, firms have interdependent pricing strategies. If a firm lowers its price, rivals may follow to maintain their market share, leading to a steeper demand curve for the price decrease. Conversely, if a firm raises its price, rivals may not follow, resulting in a more elastic demand curve for the price increase. This situation is often represented by a kinked demand curve, which has two segments: one with a steeper slope (when prices are decreased) and one with a flatter slope (when prices are increased).
D
wenxinyiyan D. A demand curve consisting of two discontinuous segments.

This question asks about the shape of the demand curve faced by an oligopolist when other firms in the market respond to price changes in a specific way: they follow a price decrease but not a price increase. This behavior is often referred to as "kinky" pricing.

Explanation:

* **Perfectly horizontal demand curve (A)**: This would imply that demand is perfectly elastic, meaning that consumers would buy any amount at a given price, and a small change in price would lead to an infinite change in quantity demanded. This does not reflect the oligopolist's situation described.
* **Highly inelastic demand curve (B)**: This would suggest that demand is relatively unresponsive to price changes. While this might be true in some markets, it does not capture the specific behavior described in the question, where rival firms respond differently to price decreases and increases.
* **Highly elastic demand curve (C)**: This indicates that demand is very responsive to price changes. Again, while elasticity is an important concept in understanding demand, it does not directly explain the "kinky" demand curve resulting from the specific competitive behavior described.
* **A demand curve consisting of two discontinuous segments (D)**: This accurately reflects the situation described. When an oligopolist lowers its price, rival firms follow, keeping the oligopolist's demand relatively inelastic (steeper segment of the curve). However, when the oligopolist raises its price, rival firms do not follow, allowing consumers to switch to competitors' products and making the oligopolist's demand relatively elastic (flatter segment of the curve). This creates a demand curve with two distinct segments, or a "kink."
D
zhipu D. A demand curve consisting of two discontinuous segments.

In an oligopoly, when rival firms follow a price decrease but not a price increase, the demand curve facing an oligopolist typically has a kinked shape. This kinked demand curve consists of two discontinuous segments: one segment that is more elastic above the current price (where a price increase leads to a significant loss of market share because rivals do not follow) and another segment that is more inelastic below the current price (where a price decrease leads to only a small increase in market share because rivals also decrease their prices). This kinked demand curve reflects the strategic interaction and interdependence among firms in an oligopoly.
D
gpto1 D D