If price is $12 when the price elasticity of demand is -1,then marginal revenue must be:
A) $24.
B) $18.
C) $12.
D) $6.
E) $0.

Question

Quizplus · Accepted Answer

When the price elasticity of demand is -1, it means we are at the unit elastic point of the demand curve, where an increase or decrease in price leads to an equal proportional decrease or increase in quantity demanded, resulting in no change in total revenue. Therefore, marginal revenue, which is the additional revenue from selling one more unit, is $0 because any change in quantity sold does not change total revenue at this point.

If Price Is $12 When the Price Elasticity of Demand