Learning Contents:                                                              ·          Concept of Price Elasticity of Demand and Total revenue ·          Relationship between   Price Elasticity and Total revenue ·          Impact of Price change on the Total revenue of the Firm   Price Elasticity of Demand Price elasticity of demand explains how much change can be seen in quantity demanded as a result of change in the price of the commodity. It shows whether the demand for the commodity is elastic i.e. very responsive to price change or inelastic i.e. less responsive to price change. When an increase in price reduces the quantity demanded a lot and decrease in price increases the quantity demanded a lot is called  elastic demand . On the other hand, when an increase in price reduces the quantity demanded just a little and decrease in price increases the quantity demanded just a little is called an inelastic demand .   Total Revenue: The amount of money that