Assume an oligopolist confronts two possible demand curves for its own output, as illustrated here. The first ( A ) prevails if other oligopolists donA????1t match price changes. The second ( B ) prevails if rivals do match price changes.
( a ) By how much does quantity demanded increase if the price is reduced from $11 to $9 and ( i ) Rivals match the price cut? ( ii ) Rivals donA????1t match the price cut?
( b ) By how much does quantity demanded change when the price is raised from $11 to $13 and ( i ) Rivals match the price hike? ( ii ) Rivals donA????1t match the price hike?
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