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Homework answers / question archive / Suppose the equilibrium price in the market is $100 and the marginal revenue associated with the linear (inverse) demand function is $50

Suppose the equilibrium price in the market is $100 and the marginal revenue associated with the linear (inverse) demand function is $50

Economics

Suppose the equilibrium price in the market is $100 and the marginal revenue associated with the linear (inverse) demand function is $50. Then we know that the own price elasticity of demand is:

Select One (show work):

a. 2

b. 1

c. It cannot be determined from the information contained in the question

d. -2

Option 1

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Option 2

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