Question

Marginal revenue will be negative if elasticity of demand is ______.

• A. equal to zero
• B. less than zero
• C. greater than one
• D. less than one

Answer 1

The correct option is B less than zero

If elasticity of demand is less than zero then it denotes that the change in quantity demand is opposite to the change in its own price which means that the slope of the demand curve is negative at this point and the marginal revenue is also negative due to negative slope.