Given a linear demand curve, at which combination of price and marginal revenue ( P, MR) is the price elasticity of demand greater than 1?

A) P = 15, MR = 8
B) P = 12, MR = 0
C) P = 8, MR = −2
D) P = 4, MR = −4

Question

Nykevia Dashae · Accepted Answer

Final Answer : A, Explanation :  When the price elasticity of demand is greater than 1, demand is elastic, and marginal revenue is positive. In option A, MR is positive, indicating elastic demand.

Given a linear demand curve, at which combination of price and marginal revenue ( P, MR) is the price elasticity of demand greater than 1?

A) P = 15, MR = 8
B) P = 12, MR = 0
C) P = 8, MR = −2
D) P = 4, MR = −4

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Learning Objectives

Related questions

Given a linear demand curve, at which combination of price and marginal revenue ( P, MR) is the price elasticity of demand greater than 1?A) P = 15, MR = 8B) P = 12, MR = 0C) P = 8, MR = −2D) P = 4, MR = −4

Definitions

Learning Objectives

Learning Objectives

Related questions

Given a linear demand curve, at which combination of price and marginal revenue ( P, MR) is the price elasticity of demand greater than 1?

A) P = 15, MR = 8
B) P = 12, MR = 0
C) P = 8, MR = −2
D) P = 4, MR = −4