When marginal revenue is positive,demand is:
A) elastic.
B) inelastic.
C) unit elastic.
D) There is not sufficient information to classify the elasticity of demand.

Question

Quizplus · Accepted Answer

When marginal revenue is positive, it means that each additional unit sold is contributing positively to the total revenue. This implies that the demand is responsive to price changes, which is the characteristic of elastic demand. Therefore, the best choice is option A.

When Marginal Revenue Is Positive,demand Is