Exhibit 5-1 Demand curve
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In Exhibit 5-1, between points b and c, the price elasticity of demand measures

The law of demand states that, ceteris paribus, price and quantity demanded are:

a. directly related. b. inversely related. c. uniformly related. d. horizontally related.

A monopoly firm can sell 150 units of output for $10 per unit. Alternatively, it can sell 151 units of output for $9.90 per unit. The marginal revenue of the 151st unit of output is

a. -$5.10. b. -$0.10. c. $2.45. d. $5.10.