Summarize the relationship between elasticity, price changes, and chan

Summarize the relationship between elasticity, price changes, and changes in total revenue.

What will be an ideal response?

ANSWER

When demand is inelastic, total revenue moves in the same direction as price, and in the opposite direction of quantity demanded. When demand is elastic, total revenue moves in the opposite direction of price, and the same direction as quantity demanded. When demand is unit elastic, a price change has no effect on total revenue.