The Following Graph Shows the Demands and Marginal Revenue in Two

question 51

Multiple Choice

The following graph shows the demands and marginal revenue in two markets,1 and 2,for a price discriminating firm along with total marginal revenue,MR_T,and marginal cost. At the optimal price and quantity,what is demand elasticity in each market?

• A)E₁ = -3.67,E₂ = -2.33
• B)E₁ = -3,E₂ = -4
• C)E₁ = -2.5,E₂ = -3.5
• D)E₁ = -3,E₂ = -3
• E)E₁ = -1.67,E₂ = -2.33

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