Which of the Following Describes a Correct Relation Between Price $Q > a / 2 b$

question 24

Multiple Choice

Which of the following describes a correct relation between price elasticity of demand and a monopolist's marginal revenue when inverse demand is linear, P = a-bQ?

• A) Demand is elastic when \(Q > a / 2 b\).
• B) Demand is inelastic when \(Q > a / b\).
• C) Demand is unit elastic when \(P = a / 2 b\).
• D) Demand is elastic when \(Q < a / 2 b\).

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