Refer to the following graph:

-Over the price range $90 to $110, marginal revenue is ________ and demand is ________.
A) greater than one; inelastic
B) positive; elastic
C) negative; inelastic
D) less than one; elastic
E) none of the above

Question

Refer to the following graph:
 
-Over the price range $90 to $110, marginal revenue is ________ and demand is ________.
A) greater than one; inelastic 
B) positive; elastic 
C) negative; inelastic 
D) less than one; elastic 
E) none of the above

Quizplus · Accepted Answer

Marginal revenue is positive when demand is elastic, meaning that a small increase in price will lead to a larger increase in revenue.

Refer to the Following Graph