Kinked Demand Curve
the shape of a demand curve when any rise in price above the customary level will result in a sharp decline in demand. | ||||
Search Dictionary:
Kinked Demand Curve definition was found in categories: Encyclopedia(1)
Kinked Demand Curve Definition from Encyclopedia Dictionaries & Glossaries
| Wikipedia English - The Free Encyclopedia |
Kinked demand
The kinked demand curve theory is an economic theory regarding oligopoly and monopolistic competition. When it was created, the idea fundamentally challenged classical economic tenets such as efficient markets and rapidly-changing prices, ideas that underly basic supply and demand models. Kinked demand was an initial attempt to explain sticky prices.
| See more at Wikipedia.org... |