Assume an oligopolist confronts two possible demand curves for its own output, as illustrated below. The first (A) prevails if other oligopolists don't match price changes. The second (8) prevails if rivals do match price changes. Price(dollars per unit) 19 17 15 13 11 N Demand A 0 2 Demand B 468 10 12 14 16 18 20 Quantity (units per period) Instructions: Enter your responses as a whole number. In part b, do not include a negative sign with your answers a. By how much does quantity demanded increase if price is reduced from $11 to $7 and () Rivals match the price cut? (i) Rivals don't match the price cut? Instructions: Enter your responses as a whole number. In part b, do not include a negative sign with your answers a. By how much does quantity demanded increase if price is reduced from $11 to $7 and () Rivals match the price cut? (4) Rivals don't match the price cut? b. By how much does quantity demanded decrease when price is raised from $11 to $13 and () Rivals match the price hike? (0) Rivals don't match the price hike?

Assume an oligopolist confronts two possible demand curves for its own output, as illustrated below. The first (A) prevails if other oligopolists don't match price changes. The second (8) prevails if rivals do match price changes. Price(dollars per unit) 19 17 15 13 11 N Demand A 0 2 Demand B 468 10 12 14 16 18 20 Quantity (units per period) Instructions: Enter your responses as a whole number. In part b, do not include a negative sign with your answers a. By how much does quantity demanded increase if price is reduced from $11 to $7 and () Rivals match the price cut? (i) Rivals don't match the price cut? Instructions: Enter your responses as a whole number. In part b, do not include a negative sign with your answers a. By how much does quantity demanded increase if price is reduced from $11 to $7 and () Rivals match the price cut? (4) Rivals don't match the price cut? b. By how much does quantity demanded decrease when price is raised from $11 to $13 and () Rivals match the price hike? (0) Rivals don't match the price hike?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter16: Bargaining

Section: Chapter Questions

Problem 16.1IP

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