the firm in the diagram lowers price from P ; to P2, it will lose Po Po ba in revenue from the price cut but increase revenue by Q 1 bcQ 2 from the increase in sales lose Pa Pa ca in revenue from the price cut but increase revenue by Q 1 acQ 2 from the Increase in sales. incur a decline in total revenue because it is operating on the elastic segment of the demand curve incur an increase in total revenue because it is operating on the inelastic segment of the demand curve