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When the marginal revenue curve intersects the horizontal axis A. demand is relatively inelastic. B. demand is perfectly elastic. C. demand is relatively elastic. D. demand is unitary elastic.
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When the marginal revenue curve intersects the horizontal axis A. demand is relatively inelastic. B. demand is perfectly elastic. C. demand is relatively elastic. D. demand is unitary elastic.

User Gilmar
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Answer:

D. demand is unitary elastic.

Step-by-step explanation:

A unitary elastic demand means that the quantity demanded will change proportionally to any change in the price of the product or service. E.g. price decreases by 10%, then quantity demanded will increase by 10%.

The marginal revenue curve represents the additional revenue generated by selling one more unit. As the marginal revenue curve approaches 0, it means that selling one additional unit generates lower revenues.

User Sead
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