Refer to the accompanying figure. When the price is equal to 8, the price elasticity of demand for the demand curve D1 is and for D2 the price elasticity of demand is .

A. 4; 4
B. 4; 1
C. 1; 4
D. 2; 4

Answer: C

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Economics

The above figure shows the demand and cost curves facing a monopoly. If the firm is a profit maximizer, its Lerner Index will equal

A) 1. B) 1/3. C) 1.5. D) 3.

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Economics

Refer to the accompanying figure. When the price is equal to 8, the price elasticity of demand for the demand curve D1 is ________ and for D2 the price elasticity of demand is ________.