Question: D Question 38 3.94 pts Refer to the graph shown. If a firm operating as if it were faced with a kinked demand curve believes

D Question 38 3.94 pts Refer to the graph shown. If a firm operating as if it were faced with a kinked demand curve believes that if it lowers price from P2 to P4, its rival will match the price cut: Price P1 P2 P4 D1 D2 Q1 Q2 Q3 Q4 Q5 Quantity it probably won't lower price, since the percentage decline in price will exceed the percentage increase in quantity sold. the demand curve used by the firm for decision making is highly elastic. it probably will lower price, since doing so will increase sales. O D1 is the relevant demand curve

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