Use the following to answer questions :
Figure 4-2
-Refer to Figure 4-2.Assume that the sellers in this market wish to maximize their total revenue.What price should they set along DD in order to maximize total revenue?
A)$5
B)$4
C)$3
D)S2
E)None of the above

Question

Use the following to answer questions :
Figure 4-2 
-Refer to Figure 4-2.Assume that the sellers in this market wish to maximize their total revenue.What price should they set along DD in order to maximize total revenue?
A)$5 
B)$4 
C)$3 
D)S2 
E)None of the above

Quizplus · Accepted Answer

Without access to Figure 4-2, it's impossible to accurately determine the price that would maximize total revenue for sellers in the market. Total revenue is maximized at the price and quantity where the elasticity of demand is unitary, but specific details from the figure are needed to identify this point.

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