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    Price Elasticity of Demand's Impact on Revenues

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    What would be the impact on revenues generated from sales of a. consumer line desktops and b. high profile enterprise level desktops if the firm raised the price of the product? What if the firm lowered the price?

    © BrainMass Inc. brainmass.com February 24, 2021, 2:26 pm ad1c9bdddf
    https://brainmass.com/economics/demand-supply/price-elasticity-demand-impact-revenues-21035

    Solution Preview

    Price Elasticity of Demand = | %ΔQ / %ΔP |
    <br>Consumer line desktops are usually thought to be price elastic.
    <br>When EL = | %&#916;Q / %&#916;P | > 1, the percentage change in the quantity demanded is GREATER than a percentage change in the price. Because Revenue = Price * Quantiy, ...

    Solution Summary

    Price Elasticity of Demand is expressed.

    $2.19

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