The graph below illustrates two demand curves for a firm operating in a differentiated product oligopoly. Initially, the firm charges a price of $60 and produces 10 units of output. One of the demand curves is relevant when rivals match the firm’s price changes; the other demand curve is relevant when rivals do not match price changes.

D2 is relevant when rivals match the firm’s price changes

D1 is relevant when rivals do not match the firm’s price changes

Explanation:

Given

See attachment for graph

Solving (a): Which is relevant to price changes

Calculate the slope of D1 and D2 using:

For D1

So:

For D2

So:

By comparison:

i.e.

This means that D2 is steeper than D1. Hence, D2 is relevant to price changes

Solving (b): Which is not relevant to price changes

In (a), we concluded that D2 is relevant to price change.

Hence, D1 is relevant when price does not change.

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.

answerindustrial revolution;