Moving along a straight line demand curve, where demand is__________ , marginal revenue is__________ .
A) elastic; equal to one
B) elastic; negative
C) inelastic; positive
D) inelastic; negative

Question

Quizplus · Accepted Answer

When demand is inelastic, a decrease in price leads to a smaller percentage increase in quantity demanded, resulting in a decrease in total revenue, making marginal revenue negative.

Moving Along a Straight Line Demand Curve, Where Demand Is__________