Total revenue equals the price multiplied by the quantity. The relative change price and quantity is given by the concept of .

elasticity

Explanation:

Elasticity has to do with how the changes in price affects the quantity I goods and services that are demanded by the consumers in the market.

Sometimes, a change in price may lead to either a larger change in the quantity demand or it ma lead to a minimal effect on the quantity of good demanded. This is the concept of elastic and inelastic demand.

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