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.

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Definitions:

Polysaccharides

Large molecules composed of long chains of monosaccharide units bonded together, serving various functions such as storage and structural roles in plants and animals.

Triacylglycerols

Lipids formed by three fatty acids linked to a glycerol molecule; a main form of energy storage in animals.

Phospholipids

Lipids in which two fatty acids and a phosphorus-containing group are attached to glycerol; major components of cell membranes.

Hydrocarbons

Organic compounds consisting entirely of hydrogen and carbon, often used as fuels and solvents.