Examine the impact on total revenue of an
Elastic Demand curve : The demand curve is said to be elastic when the quantity demanded varies up to any extent at the same prices. The elasticity of demand is infinity.
Total Revenue can be defined as the total money receipts from the sale of the commodities.
Total Revenue = Price * Quantity
When the demand is elastic it implies that the price remains the same while the quantity changes. Therefore, any change in the total revenue will be caused by the change in the quantity demanded and not the change in the price of that commodity.
Here only the quantity demanded of the commodity changes and the price level remains the same
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