Table 47.1 Price Elasticity of Demand and Total Revenue

Price of crossing = $0.90Price of crossing = $1.10
Unit-elastic demand (price elasticity of demand = 1)
Quantity demanded1,1000 900
Total revenue$990$990
Inelastic demand (price elasticity of demand = 0.5)
Quantity demanded1,050$ 950
Total revenue$945$1,045
Elastic demand (price elasticity of demand = 2)
Quantity demanded1,200800
Total revenue$1,080$880