Refer to the graph below (12 points; 3 points each).

Only one choice is correct for each question andyour answers for the following questions should be a, b, c or d.

(1)At Point a, what is the price elasticity of demand?Your Answer:(fill in "a", "b", or "c")

a.>1

b.=1

c.

(2)At Point b,Your Answer:(fill in "a", "b", or "c")

a.MR>0

b.MR= 0

c.MR

(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.

c.total revenue is maximized.

d.marginal revenue is maximized.

(b) Total Revenue S Ed = 1 b 500 Ed> 1 En