Refer to the Graph, Which Shows a Linear Demand Curve

question 315

Multiple Choice

Refer to the graph, which shows a linear demand curve for a monopolist. Which of the following statements is correct?

• A)The area 0 QVS is greater than the area 0 RWT.
• B)The demand curve has unit price elasticity at W.
• C)The price elasticity of demand is less at U than at V.
• D)The price elasticity of demand is greater at W than at V.

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Definitions:

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