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If the Demand Is More Price Elastic, How Would That

Question 3

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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