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Read the following statements about the elasticity of demand, and select the correct option(s).
A government wishing to raise tax revenue should choose to tax products with elastic demand.
If demand is Q = 3 -2P, the elasticity of demand is smaller than 1 when price is less than one half the quantity.
The firm would never want to choose a point where the demand curve is elastic because the marginal revenue is negative and thus lower than marginal cost.
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