The price elasticity of demand is important in pricing a product and it is directly related to the firm's total revenue. Prior to beginning work on this discussion, read Amy Gallo's article, A Refresher on Price Elasticity(Links to an external site.). How is the price elasticity of demand calculated? Why is the price elasticity of demand important in your business? What are the determinants of the price elasticity of demand? What are some common mistakes managers can make with the price elasticity of demand? Explain carefully.