This paper conducts an in-depth analysis on the relation between the price elasticity of demand and total revenue. According to the analysis, there exist anomalous cases in which the familiar relation between the two may not hold except when we adopt ...
This paper conducts an in-depth analysis on the relation between the price elasticity of demand and total revenue. According to the analysis, there exist anomalous cases in which the familiar relation between the two may not hold except when we adopt the arc elasticity around the midpoint. This implies that more caution should be taken when we construct numerical examples or problems on the relation between the two. This paper also indicates that there is some limitation in the practical value of the relation.