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-Suppose That, Along a Linear Demand Curve, the Elasticity of Demand

Question 12

Multiple Choice

-Suppose that, along a linear demand curve, the elasticity of demand is equal to 1 when the price is $4 and the quantity is 100 units. Then the A) marginal revenue is positive at 100 units. B) marginal revenue is negative at 100 units. C) total revenue is at its maximum when 100 units are produced. D) Both answers A and B are correct. E) Both answers A and C are correct.
-Suppose that, along a linear demand curve, the elasticity of demand is equal to 1 when the price is $4 and the quantity is 100 units. Then the


A) marginal revenue is positive at 100 units.
B) marginal revenue is negative at 100 units.
C) total revenue is at its maximum when 100 units are produced.
D) Both answers A and B are correct.
E) Both answers A and C are correct.

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