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, 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. <1

(2)At Point b, Your Answer: (fill in "a", "b", or "c") a.MR>0 b.MR= 0 c.MR<0

(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.