30 points
>
Time management is very much important in IIT JAM. The eduncle test series for IIT JAM Mathematical Statistics helped me a lot in this portion. I am very thankful to the test series I bought from eduncle.
Nilanjan Bhowmick AIR 3, CSIR NET (Earth Science)
- UGC NET
- Economics
6. in price-discrimination, a monopolist lowers the price at the market where there is (1) higher elasticity (2) lower elasticity (3) expensive factor price (4)
6. In price-discrimination, a monopolist lowers the price at the market where there is (1) Higher elasticity (2) Lower elasticity (3) Expensive factor price (4) Cheap factor price (1) HT (2) 1t 4 (3) H8 HT 4 (4) The kinked demand curve theory explains that even when the demand condi- tions the -the price- (1) Change, changes (2) Change, remains stable (3) Remain stable, changes (4) Remain stable, rise
2 Answer(s)
Answer Now
- 0 Likes
- 2 Comments
- 0 Shares
-
![comment-profile-img]()
>
-
![comment-profile-img]()
>
Nidhi taparia
![best-answer]()
6. Monopolist lowers the price in market where (1) elasticity is higher. This is because due to high elasticity, if the monopolist reduces price even a little, he can gain a great share in the market by increasing quantity much more. But in a lower elasticity market, demand is inelastic. So monopolist will take advantage of this and sell his product at high price because even then his quantity demanded will not reduce that much.
Do You Want Better RANK in Your Exam?
Start Your Preparations with Eduncle’s FREE Study Material
- Updated Syllabus, Paper Pattern & Full Exam Details
- Sample Theory of Most Important Topic
- Model Test Paper with Detailed Solutions
- Last 5 Years Question Papers & Answers
Sign Up to Download FREE Study Material Worth Rs. 500/-
Nidhi taparia Best Answer
7. Option (2) is correct. Kinked demand curve theory postulates that in oligopoly market, prices remain sticky at current level. So even if demand conditions change, prices are stable.