9. The kinked demand curve Wilke is a manufacturer in the oligopolistically competitive market for footballs. Two other manufacturers, Rawlding and Spaldon, compete with Wilke for football consumers. Wilke faces the kinked demand curve for footballs depicted on the graph. Initially, Wilke charges $30 per football, producing and selling 7 million footballs per year. PRICE (DOLLARS PER BALL) 36 35 34 33 32 31 30 29 28 27 28 5 в 7 8 FOOTBALLS (Millions of balls) 9 10 ? As an oligopolist, Wilke is a price maker. If Wilke raises the price of its football from $30 to $32 per ball, the quantity of Wilke footballs demanded million footballs per year. If Wilke reduces the price of its football from $30 to $28 per ball, the quantity of footballs demanded million footballs per year. (Hint: Mouse over the points on the graph to see their coordinates.) by by If Wilke lowers the price of its football below $30, the kinked demand curve model suggests that Rawlding and Spaldon will respond by PRICE (DOLLARS PER BALL) 38 35 34 33 32 31 30 29 28 27 26 4 5 6 7 8 FOOTBALLS (Millions of balls) 9 10 As an oligopolist, Wilke is a price maker. If Wilke raises the price of its football from $30 to $32 per ball, the quantity of Wilke footballs demanded million footballs per year. If Wilke reduces the price of its football from $30 to $28 per ball, the quantity of footballs demanded million footballs per year. (Hint: Mouse over the points on the graph to see their coordinates.) by by If Wilke lowers the price of its football below $30, the kinked demand curve model suggests that Rawlding and Spaldon will respond by The portion of Wilke's demand curve above a price of $30 per ball is elastic than the portion of the demand curve below a price of $30 per ball. Consider the changes in quantity demanded when Wilke raises or lowers its price by $2 per ball. According to the kinked demand curve model, the price of a Wilke football is most likely to $30 per ball.
9. The kinked demand curve Wilke is a manufacturer in the oligopolistically competitive market for footballs. Two other manufacturers, Rawlding and Spaldon, compete with Wilke for football consumers. Wilke faces the kinked demand curve for footballs depicted on the graph. Initially, Wilke charges $30 per football, producing and selling 7 million footballs per year. PRICE (DOLLARS PER BALL) 36 35 34 33 32 31 30 29 28 27 28 5 в 7 8 FOOTBALLS (Millions of balls) 9 10 ? As an oligopolist, Wilke is a price maker. If Wilke raises the price of its football from $30 to $32 per ball, the quantity of Wilke footballs demanded million footballs per year. If Wilke reduces the price of its football from $30 to $28 per ball, the quantity of footballs demanded million footballs per year. (Hint: Mouse over the points on the graph to see their coordinates.) by by If Wilke lowers the price of its football below $30, the kinked demand curve model suggests that Rawlding and Spaldon will respond by PRICE (DOLLARS PER BALL) 38 35 34 33 32 31 30 29 28 27 26 4 5 6 7 8 FOOTBALLS (Millions of balls) 9 10 As an oligopolist, Wilke is a price maker. If Wilke raises the price of its football from $30 to $32 per ball, the quantity of Wilke footballs demanded million footballs per year. If Wilke reduces the price of its football from $30 to $28 per ball, the quantity of footballs demanded million footballs per year. (Hint: Mouse over the points on the graph to see their coordinates.) by by If Wilke lowers the price of its football below $30, the kinked demand curve model suggests that Rawlding and Spaldon will respond by The portion of Wilke's demand curve above a price of $30 per ball is elastic than the portion of the demand curve below a price of $30 per ball. Consider the changes in quantity demanded when Wilke raises or lowers its price by $2 per ball. According to the kinked demand curve model, the price of a Wilke football is most likely to $30 per ball.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter10: Monopolistic Competition And Oligopoly
Section: Chapter Questions
Problem 15CTQ: Make a case for why monopolistically competitive industries never reach long-run equilibrium.
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Transcribed Image Text:9. The kinked demand curve
Wilke is a manufacturer in the oligopolistically competitive market for footballs. Two other manufacturers, Rawlding and Spaldon, compete with Wilke
for football consumers. Wilke faces the kinked demand curve for footballs depicted on the graph. Initially, Wilke charges $30 per football, producing
and selling 7 million footballs per year.
PRICE (DOLLARS PER BALL)
36
35
34
33
32
31
30
29
28
27
28
5
в
7
8
FOOTBALLS (Millions of balls)
9
10
?
As an oligopolist, Wilke is a price maker. If Wilke raises the price of its football from $30 to $32 per ball, the quantity of Wilke footballs demanded
million footballs per year. If Wilke reduces the price of its football from $30 to $28 per ball, the quantity of footballs demanded
million footballs per year. (Hint: Mouse over the points on the graph to see their coordinates.)
by
by
If Wilke lowers the price of its football below $30, the kinked demand curve model suggests that Rawlding and Spaldon will respond by
Transcribed Image Text:PRICE (DOLLARS PER BALL)
38
35
34
33
32
31
30
29
28
27
26
4
5
6
7
8
FOOTBALLS (Millions of balls)
9
10
As an oligopolist, Wilke is a price maker. If Wilke raises the price of its football from $30 to $32 per ball, the quantity of Wilke footballs demanded
million footballs per year. If Wilke reduces the price of its football from $30 to $28 per ball, the quantity of footballs demanded
million footballs per year. (Hint: Mouse over the points on the graph to see their coordinates.)
by
by
If Wilke lowers the price of its football below $30, the kinked demand curve model suggests that Rawlding and Spaldon will respond by
The portion of Wilke's demand curve above a price of $30 per ball is
elastic than the portion of the demand curve below a price of $30 per ball.
Consider the changes in quantity demanded when Wilke raises or lowers its price by $2 per ball. According to the kinked demand curve model, the
price of a Wilke football is most likely to
$30 per ball.
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