<p>Pick any point on the demand curve. If you were to increase price by <span class="math-container">$x$</span> percent, the quantity sold will decrease by <span class="math-container">$1.5x$</span> percent.</p>

<ul>
<li>If you increase price, what will happen to your total revenue? Will it go up or down?</li>
<li>If you decrease price, what will happen to your total revenue?</li>
</ul>

<p>Move your point <span class="math-container">$x$</span> in the direction that will increase your TR. Do the same thing over and over again. <a href="https://demonstrations.wolfram.com/ConstantPriceElasticityOfDemand/" rel="nofollow noreferrer">This link</a> might also help you visualize and understand more.</p>

CC BY-SA 4.0
2019-11-04T06:33:49.370Z
2019-11-04T06:33:49.370Z
Art
<p>So to maximize total revenue, we sell at the price on the demand elasticity curve where elasticity=1 right? Lets say on one curve, the elasticity throughout the curve is equal to 1.5? How much should we decrease the price? </p>

CC BY-SA 4.0
2019-11-04T06:24:22.607Z
(-1) This question does not show any research effort. If one understands the logic behind the elasticty 1 thing, one can answer the question easily.
Giskard
CC BY-SA 4.0
2019-11-04T07:27:38.930Z
Elasticity is not constant even with a linear demand curve.
Brennan
<elasticity>
How to maximize total revenue on constant elasticy curve
chrislam5459
# How to maximize total revenue on constant elasticy curve

(Asked by: username_0 on 2019-11-04)

So to maximize total revenue, we sell at the price on the demand elasticity curve where elasticity=1 right? Lets say on one curve, the elasticity throughout the curve is equal to 1.5? How much should we decrease the price?

**Tags:** elasticity

> **Comments:**
> **username_1**: (-1) This question does not show any research effort. If one understands the logic behind the elasticty 1 thing, one can answer the question easily.  
> **username_2**: Elasticity is not constant even with a linear demand curve.  

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## 1 answers

### Answer by username_3 on 2019-11-04. Score: 0

Pick any point on the demand curve. If you were to increase price by $x$ percent, the quantity sold will decrease by $1.5x$ percent.

* If you increase price, what will happen to your total revenue? Will it go up or down?
* If you decrease price, what will happen to your total revenue?

Move your point $x$ in the direction that will increase your TR. Do the same thing over and over again. [This link](https://demonstrations.wolfram.com/ConstantPriceElasticityOfDemand/) might also help you visualize and understand more.


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