The figures given below represent the revenue curves of a monopolist.Figure 11.2
TR: Total revenue curve
AR: Average revenue curve
MR: Marginal revenue curve
-According to Figure 11.2, at point C:
A)price elasticity of demand is equal to infinity.
B)price elasticity of supply is equal to 1.
C)price elasticity of supply is greater than 1.
D)price elasticity of demand is equal to 0.
E)price elasticity of demand is equal to 1.

Question

The figures given below represent the revenue curves of a monopolist.Figure 11.2
  TR: Total revenue curve
AR: Average revenue curve
MR: Marginal revenue curve
-According to Figure 11.2, at point C:
A)price elasticity of demand is equal to infinity. 
B)price elasticity of supply is equal to 1. 
C)price elasticity of supply is greater than 1. 
D)price elasticity of demand is equal to 0. 
E)price elasticity of demand is equal to 1.

Quizplus · Accepted Answer

At point C, the price elasticity of demand is equal to 1, indicating unitary elasticity where the percentage change in quantity demanded is equal to the percentage change in price.

The Figures Given Below Represent the Revenue Curves of a Monopolist.Figure