The Industry Elasticity of Demand for Good X Is −1

Multiple Choice

The industry elasticity of demand for good X is −1.5,while the elasticity of demand for an individual manufacturer of good X is −9.Based on this information,the Rothschild index of market power is:

A) 1/6, indicating there is little monopoly power in this industry.
B) 1/6, indicating there is significant monopoly power in this industry.
C) 6, indicating there is little monopoly power in this industry.
D) None of the answers are correct.