If the Demand Is More Price Elastic, How Would That

question 4

Multiple Choice

If the demand is more price elastic, how would that affect the difference between the price and marginal revenue?

• A) The difference between the price and marginal revenue would be smaller.
• B) The difference between the price and marginal revenue would be larger.
• C) The difference between the price and marginal revenue could be smaller or larger, depending on the demand curve.

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Definitions:

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