The following figure shows the demand curve and the marginal revenue curve of a monopolist.On the horizontal axis,OG = GF.
Figure 11-5
-Refer to Figure 11-5.At quantity G,the price elasticity of demand:
A)is equal to one.
B)exceeds one.
C)is equal to zero.
D)is less than one.

Question

The following figure shows the demand curve and the marginal revenue curve of a monopolist.On the horizontal axis,OG = GF.
Figure 11-5 
-Refer to Figure 11-5.At quantity G,the price elasticity of demand:
A)is equal to one. 
B)exceeds one. 
C)is equal to zero. 
D)is less than one.

Quizplus · Accepted Answer

At quantity G, the price elasticity of demand is equal to one because the percentage change in quantity demanded is equal to the percentage change in price.

The Following Figure Shows the Demand Curve and the Marginal