Show that MR is negative when the absolute value of elasticity of demand is less than 1
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Lastly, if elasticity of demand is less than one, in that case MR will be negative. If elasticity of demand is equal to one or E = 1, in that case MR = 0. OQ quantity is demanded at EQ price. At this E = 1 because P is in the centre of AB demand curve.
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Lastly, if elasticity of demand is less than one, in that case MR will be negative. If elasticity of demand is equal to one or E = 1, in that case MR = 0. OQ quantity is demanded at EQ price. At this E = 1 because P is in the centre of AB demand curve.
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