The diagram below shows total revenue for a single- price monopolist.
FIGURE 10- 3
-Refer to Figure 10- 3.The price elasticity of demand at Q3 is

Question

The diagram below shows total revenue for a single- price monopolist.
  FIGURE 10- 3
-Refer to Figure 10- 3.The price elasticity of demand at Q3 is

Quizplus · Accepted Answer

At Q3, the slope of demand is steeper than at Q2, indicating a higher price elasticity of demand. This means that a small increase in price will lead to a relatively larger decrease in quantity demanded, indicating an elasticity value less than 1.

The Diagram Below Shows Total Revenue for a Single- Price