Economics · Microeconomics

Which of the following relationships between Price Elasticity of Demand (e d ), Average Revenue (AR), and Marginal Revenue (MR) is correct?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1e d = AR−MR MR
2e d = MR−AR MR
3e d = AR−MR AR✓
4e d = MR−AR AR

Correct answer

e d = AR−MR AR

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Which of the following relationships between Price Elasticity of Demand (e d ), Average Revenue (AR), and Marginal Revenue (MR) is correct?

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Which of the following relationships between Price Elasticity of Demand (e d ), Average Revenue (AR), and Marginal Revenue (MR) is correct?

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