Suppose That Along a Linear Demand Curve,the Elasticity of Demand

question 359

Multiple Choice

Suppose that along a linear demand curve,the elasticity of demand is equal to 1 when the price is $4 and the quantity is 100 units.Then the

• A) total revenue is at its maximum when 100 units are produced.
• B) marginal revenue is positive at 100 units.
• C) marginal revenue is negative at 100 units.
• D) Both answers A and B are correct.
• E) Both answers A and C are correct.

---

Definitions:

People

Refers to human beings, considered collectively or individually, as part of a community or the human species.

Adults

Individuals who have reached the age where they are considered mature and responsible, typically 18 or older in most societies.

Seeing

The process by which the eyes receive visual stimuli and send signals to the brain to interpret as images.

Rehearsal

The practice of repeatedly performing an action or activity to improve proficiency, often used in contexts of learning or performing arts.