When demand is elastic,the marginal revenue resulting from a decrease in price is:
A)positive.
B)zero.
C)negative.
D)cannot be determined without more information.

Question

Quizplus · Accepted Answer

When demand is elastic, a decrease in price leads to a proportionally larger increase in quantity demanded, which increases total revenue. Therefore, the marginal revenue, which is the additional revenue from selling one more unit, is positive.

When Demand Is Elastic,the Marginal Revenue Resulting from a Decrease