Title :
To Analysis the Relationship between the Demand Price Elasticity and Revenue
Author_Institution :
Sch. of Econ. Manage., Henan Polytech. Univ. (HPU), Jiaozuo, China
Abstract :
On the demand price elasticity and revenue, the traditional economics analysis result is that when E > 1, price and revenue reverse change; E <; 1, price and revenue are changing direction, Unit demand price elasticity, revenue is not with price changes ;But this conclusion is conditional. Through the proof: Unit price elasticity, any changes will reduce returns; When E <; 1, if prices don´t exceed 1 / E, the total income increase. E > 1,when prices drop as the range does not exceed 1 / E,total revenue increases.
Keywords :
economics; elasticity; pricing; taxation; demand price elasticity; economics analysis; revenue; Economics; Educational institutions; Elasticity; Fluctuations; Marketing and sales; Mathematical model; Presses;
Conference_Titel :
E-Product E-Service and E-Entertainment (ICEEE), 2010 International Conference on
Conference_Location :
Henan
Print_ISBN :
978-1-4244-7159-1
DOI :
10.1109/ICEEE.2010.5660441