When MR = 0, the price elasticity of demand is equal to -1.

Question

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When MR = 0, the corresponding point on the demand curve is the unit elastic point. At this point, the price elasticity of demand is equal to -1. This is because a decrease in price will lead to an equal proportional increase in quantity demanded, resulting in no change in total revenue (since MR is zero). Therefore, the price elasticity of demand is equal to 1 (or -1 in absolute value) at this point.

When MR = 0, the Price Elasticity of Demand Is