Use the following figure to answer the question : Figure 11-5 : shows the demand curve and the marginal revenue curve of a monopolist.On the horizontal axis,OG = GF.
-Refer to Figure 11-5.Between points A and F on the demand curve,the price elasticity of demand:
A)is equal to one.
B)exceeds one.
C)is equal to zero.
D)is less than one.

Question

Use the following figure to answer the question : Figure 11-5 : shows the demand curve and the marginal revenue curve of a monopolist.On the horizontal axis,OG = GF. 
-Refer to Figure 11-5.Between points A and F on the demand curve,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

Between points A and F on the demand curve, the slope of the demand curve is steeper than the marginal revenue curve which means the price elasticity of demand is less than one. Therefore, the correct answer is D) is less than one.

Use the Following Figure to Answer the Question : Figure