Consider the demand curve illustrated in the figure to the right. Is demand elastic or inelastic? A. Demand is inelastic (at all prices). B. Demand is elastic at all prices above \$9.00 and inelastic at all prices below \$9.00. C. Demand is elastic at all prices above \$11.00 and inelastic at all prices below \$11.00. D. Demand is elastic (at all prices). E. Demand is inelastic at all prices above \$9.00 and elastic at all prices below \$9.00. At what price is total revenue maximized? Total revenue is maximized when price equals $\boxed{\text{\ }}. (Enter your response as a real number rounded to two decimal places.)
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If the demand curve is relatively flat, demand is elastic. If the demand curve is relatively steep, demand is inelastic. Show more…
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