When demand is elastic, marginal revenue is
A) positive.
B) negative.
C) zero.
D) undefined.
E) increasing as output increases.

Name: When demand is elastic, marginal revenue is A) positive. B) negative. C) zero. D) undefined. E) increasing as output increases.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When demand is elastic, a decrease in price leads to a proportionally larger increase in quantity demanded, resulting in an increase in total revenue. Therefore, marginal revenue is positive.

When Demand Is Elastic, Marginal Revenue Is