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ScotlandEconomicsQuick questions

Economic Markets: Structures and Intervention

Quick questions on Oligopoly and interdependence: kinked demand, collusion and game theory - SQA Advanced Higher Economics

2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?
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In the kinked demand curve model, is demand elastic or inelastic for a price rise above the current price, and why? [2 marks]
What is q2?
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Explain why a cartel agreement to fix a high price is difficult to sustain. [2 marks]

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