When MR is _______ , the price elasticity of demand is _______.
A) greater than zero; elastic
B) less than zero; inelastic
C) equal to zero; unit elastic
D) all of the above are true

Question

Quizplus · Accepted Answer

Marginal revenue (MR) and price elasticity of demand are related such that when MR is greater than zero, the demand is elastic (A); when MR is less than zero, the demand is inelastic (B); and when MR is equal to zero, the demand is unit elastic (C). Thus, all of the statements are true.

When MR Is _______ , the Price Elasticity of Demand