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 demand curve is relatively steep, indicating that a small change in price leads to a relatively small change in quantity demanded. This characteristic is indicative of inelastic demand, where the price elasticity of demand is less than 1.

The Diagram Below Shows Total Revenue for a Single-Price Monopolist