All else constant,as the price elasticity of demand decreases,so does the marginal revenue resulting from a decrease in price.

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Quizplus · Accepted Answer

This is because when demand is less elastic, consumers are less responsive to changes in price. Therefore, a decrease in price will lead to a relatively smaller increase in the quantity demanded, thus resulting in a smaller increase in total revenue. As a result, marginal revenue will decrease at a faster rate as price decreases.

All Else Constant,as the Price Elasticity of Demand Decreases,so Does