graph shown. If a firm operating as if it were faced with a kinked demand curve believes that if it raises price from P2 to P1, its rival will not go along: Multiple Choice D2 is the relevant demand curve. it probably won't raise price, since doing so would cause sales to drop from Q3 to Q1. it probably will raise price, since lower output means lower costs and greater profit. the demand curve used by the firm for decision making is highly inelastic