The kinked demand model assumes firms will: a. follow the price decreases of rivals b. ignore the price increases of rivals c. ignore all price changes of rivals d. follow all price changes of rivals e. a and b

b. ignore the price increases of rivals

Explanation:

Surplus is the amount by which the quantity supplied of a good exceeds the quantity demanded of the good.

Producer surplus is the amount a buyer is willing to pay for a good minus the cost of producing the good.

Consumer surplus is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.

In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.

The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On

Generally, the kinked demand model assumes firms will ignore the price increases of rivals

b. ignore the price increases of rivals

Explanation:

The kinked demand model assumes firms will: ignore the price increases of rivals.

answer; functional fixedness;

answer; consideration;