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Kinked demand curve

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The document discusses the kinked demand curve model. It explains that the demand curve has a "kink" at the existing price, with the segment above the existing price being highly elastic and the segment below being highly inelastic. The kinked demand curve model, developed by Paul A. Sweezy, suggests that prices tend to be sticky or inflexible in the long run due to the different elasticities of demand above and below the current price.

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MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam Kinked demand curve MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam
MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam Kinked Demand Curve Price sticky or inflexible for long time Paul A. Sweezy. Sweezy’s Model demand curve has a ‘kink’ at existing price kink- sharp blend segment above the existing price Ed is highly elastic segment below the existing price ED is highly inelastic
MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam Watch Full Video course & take quiz visit https://www.meraskill.com MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam

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Kinked demand curve

  • 1. MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam Kinked demand curve MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam
  • 2. MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam Kinked Demand Curve Price sticky or inflexible for long time Paul A. Sweezy. Sweezy’s Model demand curve has a ‘kink’ at existing price kink- sharp blend segment above the existing price Ed is highly elastic segment below the existing price ED is highly inelastic
  • 3. MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam Watch Full Video course & take quiz visit https://www.meraskill.com MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam