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The Following Graph Shows the Demands and Marginal Revenue in Two

Question 44

Multiple Choice

The following graph shows the demands and marginal revenue in two markets,1 and 2,for a price discriminating firm along with total marginal revenue,MRT,and marginal cost. The following graph shows the demands and marginal revenue in two markets,1 and 2,for a price discriminating firm along with total marginal revenue,MR<sub>T</sub>,and marginal cost. At the optimal price and quantity,what is demand elasticity in each market? A) E<sub>1</sub> = -3.67,E<sub>2</sub> = -2.33 B) E<sub>1</sub> = -3,E<sub>2</sub> = -4 C) E<sub>1</sub> = -2.5,E<sub>2</sub> = -3.5 D) E<sub>1</sub> = -3,E<sub>2</sub> =-3 E) E<sub>1</sub> = -1.67,E<sub>2</sub> = -2.33 At the optimal price and quantity,what is demand elasticity in each market?


A) E1 = -3.67,E2 = -2.33
B) E1 = -3,E2 = -4
C) E1 = -2.5,E2 = -3.5
D) E1 = -3,E2 =-3
E) E1 = -1.67,E2 = -2.33

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