Step 2 - ELASTICITY and REVENUE? Different elasticity values will lead to different effects on the level of total revenue a firm receives. For example, if a good is elastic and a firm increases the price by 10%, they will lose more than 10% of their business, and so although they are getting more money for each one they sell, they are selling far fewer. TR=Price x Quantity Sold To see the effect that elasticity has on total revenue, fill in the table below: Price Quantity Revenue Price Elasticity of Initial New Initial New Before price After price Demand change change 25 30 100 40 1. 40 70 120 90 2. 200 220 80 64 3. 50 75 150 135 4. Has revenue increased or decreased in each case? 1. 2. 3. 4