kinked demand curve



A bend in a standard demand curve that is a result of competitors decreasing their prices to match each others, but not raising them to achieve the same effect. The thought is that once a business has reduced their price to a certain level any fluctuation that raises the price will cause the firm to lose customers.

Use kinked demand curve in a sentence

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z