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    Price elasticity of demand and total revenue

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    How does a business determine whether to increase or decrease the price of the product it sells in order to increase revenue? Explain how the pricing decisions are made based on the type of elasticity.

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    https://brainmass.com/economics/elasticity/problem-with-price-elasticity-of-demand-and-total-revenue-348954

    Solution Preview

    A business man can decide about price changes by finding price elasticity of demand at current level of prices.

    Total revenue and elasticity are strongly related. In case of inelastic demand, ...

    Solution Summary

    Solution describes how the concept of price elasticity of demand can be used in making decisions about price changes.

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