CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

In an oligopoly market, the price elasticity of demand for a firm is assumed to be ______

A. greater if the price is increased and less if the price is decreased.
B. greater if the price is decreased and less if the price is increased.
C. the same whether the price is increased or decreased.
Correct Answer: A

The firm's customers are more responsive to price increases because its rivals have lower prices.

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