If demand is inelastic,marginal revenue will be
A)positive.
B)zero.
C)negative.
D)constant.

Name: If demand is inelastic,marginal revenue will be A)positive. B)zero. C)negative. D)constant.
Brand: Quizplus
Rating: 4.7 (30 reviews)

Question

Quizplus · Accepted Answer

If demand is inelastic, a change in price will result in only a small change in quantity demanded. Therefore, when a monopolist lowers its price, the increase in revenue from selling more units will be less than the decrease in revenue from lowering the price. This means that marginal revenue will be negative.

If Demand Is Inelastic,marginal Revenue Will Be