A firm is selling its product in two markets, A and B, the demand and marginal revenue functions in which are shown as D A , D B , MR A , and MR B in the following figure along with the marginal cost function.

-In equilibrium the demand elasticity is ______ in market A and ______ in B. Does the relation between elasticities conform to the theoretical relation between prices? Why or why not?

Question

A firm is selling its product in two markets, A and B, the demand and marginal revenue functions in which are shown as D A , D B , MR A , and MR B in the following figure along with the marginal cost function.
 
-In equilibrium the demand elasticity is ______ in market A and ______ in B. Does the relation between elasticities conform to the theoretical relation between prices? Why or why not?

Quizplus · Accepted Answer

The Answer of A firm is selling its product in two markets, A and B, the demand and marginal revenue functions in which are shown as D A , D B , MR A , and MR B in the following figure along with the marginal cost function.
 
-In equilibrium the demand elasticity is ______ in market A and ______ in B. Does the relation between elasticities conform to the theoretical relation between prices? Why or why not?

A Firm Is Selling Its Product in Two Markets, a and B