Figure 4.2
-In Figure 4.2 at quantities at Q1:
A)price and total revenue are unrelated.
B)total revenue is maximized.
C)price elasticity equals 1.
D)all of the above

Name: Figure 4.2 -In Figure 4.2 at quantities at Q1: A)price and total revenue are unrelated. B)total revenue is maximized. C)price elasticity equals 1. D)all of the above
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Question

Figure 4.2
-In Figure 4.2 at quantities at Q1:
A)price and total revenue are unrelated. 
B)total revenue is maximized. 
C)price elasticity equals 1. 
D)all of the above

Quizplus · Accepted Answer

At Q1, total revenue is maximized because the price elasticity of demand equals 1.

Figure 4.2 -In Figure 4.2 at Quantities at Q1