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