Economics 9708 · AS & A Level · Price elasticity of demand

Price elasticity of demand — practice question

The diagram illustrates the total revenue curve of a firm in an imperfectly competitive market. What is the value of the price elasticity of demand for the product at output levels Q1, Q2 and Q3?

  • AQ1: equal to 1; Q2: less than 1; Q3: greater than 1
  • BQ1: greater than 1; Q2: equal to 1; Q3: less than 1
  • CQ1: greater than 1; Q2: less than 1; Q3: equal to 1
  • DQ1: less than 1; Q2: equal to 1; Q3: greater than 1

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