Use the Following Scenario to Answer the Following Questions

Multiple Choice

Use the following scenario to answer the following questions:
Kit-N-Sit and Kittysitters are two cat-sitting services in Kent,Ohio.There are no other cat-sitting services,so the market is considered to be a duopoly.
-According to the kinked demand curve theory,if Kit-N-Sit increases prices,Kittysitters will

A) do nothing and leave prices unchanged.
B) sue Kit-N-Sit for monetary damages in court.
C) respond aggressively by increasing prices.
D) split the company into two different companies: Kit and Sit.
E) respond aggressively by cutting prices.