Assume an oligopolist confronts two possible demand curves for its own output, as illustrated below. The first (A) prevails if other oligopolists don’t match price changes. The second (B) prevails if rivals do match price changes. Instructions: Enter your responses as a whole number. In part b, do not include a negative sign with your answers. a. By how much does quantity demanded increase if price is reduced from $11 to $7 and (i) Rivals match the price cut? (ii) Rivals don’t match the price cut? b. By how much does quantity demanded decrease when price is raised from $11 to $15 and (i) Rivals match the price hike? (ii) Rivals don’t match the price hike?

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