QUESTION 2 Refer to the graph below (12 points; 3 points each). Only one choice is correct for each question and your answers for the following questions should be a, b, cord. (1) At Point a, what is the price elasticity of demand? Your Answer: (fill in "a", "b", or "c") a. >1 b. =1 (2) At Point b, Your Answer: (fill in "a", "b", or "c") a. MR>O b. MR= 0 C. MRCO (3) At Point c, Your Answer: (fill in "a", "b", or "c") a. total revenue is increasing. b. total revenue is decreasing. c. total revenue is not changing. (4) At Point b, Your Answer: (fill in "a", "b", "c", or "d") a. average revenue is maximized. b. profit is maximized. E. total revenue is maximized. d. marginal revenue is maximized. (b) Total Revenue Ed = 1 b 500 Ed> Ege1 Total revenue TR q 10 Output of firm