Principles of Microeconomics / Unit 9 MIC 0831 short lesson, about 20 seconds
The Kinked Demand Curve
Captions available
The idea
If rivals match a firm's cuts but not its rises, its demand curve is kinked at the current price: elastic above, inelastic below. Neither a cut nor a rise pays, so price sticks.
In practice
A cut sells little more, since all cut; a rise loses many, since none follow.
Where people slip
The kink explains stickiness, not how the price got there; the idea is anchor-only.
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