Define the price elasticity of demand

Reference no: EM13175838

Suppose the equilibrium price in the market is $10 and the price elasticity of demand for the linear demand function at the market equilibrium is 1.25. Then we know that:

a demand is inelastic.
b marginal revenue is $2.
c marginal revenue is $50.
d demand is unit elastic.

Reference no: EM13175838

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