International Journal of Science and Research (IJSR)

International Journal of Science and Research (IJSR)
Open Access | Fully Refereed | Peer Reviewed

ISSN: 2319-7064


Downloads: 102

Informative Article | Economics | Papua New Guinea | Volume 5 Issue 9, September 2016


The Impact of Elasticity on the Firm's Revenue

Samithamby Senthilnathan


Abstract: The elasticity is an important measure impacting on a forms revenue. Hence, it is important for a firm to know how the proposed change in price of its product can affect its total revenue, when the product is to be sold in the new market condition at the new price. In this context, the measure of elasticity indirectly reflects how the buyers will react to the change in price and the new price to come. This implies that the elasticity of the product becomes a crucial measure to reflect what the percentage of income the firm can gain or lose, when the price change takes place for its respective product. This paper demonstrates in a new mathematically constructive approach as consistent with the existing accepted phenomena of elasticity that elastic product shows negative relationship between price change and change in total revenue, inelastic product can result in positive relationship between price change and change in total revenue, and unit elasticity product has no impact on change in total revenue as the response to a price change. Indicatively, this paper explores three constructive, but similar and alternative, mathematicalmethods for the existing phenomena how the percentage of change in total revenue can be determined with respect to elasticity, and current and new prices and their respective quantities.


Keywords: elasticity, demand, supply, quantity, market, revenue


Edition: Volume 5 Issue 9, September 2016,


Pages: 1728 - 1731


How to Cite this Article?

Samithamby Senthilnathan, "The Impact of Elasticity on the Firm's Revenue", International Journal of Science and Research (IJSR), https://www.ijsr.net/get_abstract.php?paper_id=ART20161394, Volume 5 Issue 9, September 2016, 1728 - 1731

How to Share this Article?

Enter Your Email Address


Similar Articles with Keyword 'elasticity'

Downloads: 105 | Weekly Hits: ⮙1 | Monthly Hits: ⮙1

Research Paper, Economics, Mexico, Volume 4 Issue 10, October 2015

Pages: 1338 - 1341

Controversy and Empirical Evidence About the Giffen Paradox Case: Egg Consumption in Mexico

Ph.D. Julio Csar Ceniceros Angulo

Share this Article

Downloads: 116

Research Paper, Economics, India, Volume 4 Issue 9, September 2015

Pages: 1611 - 1613

Resource use efficiency of the Sample Farms in Paddy Cultivation in Azamgarh District of U.P

Rajeev Singh, Santosh Kumar Mishra, Pravin Shahu

Share this Article

Similar Articles with Keyword 'demand'

Downloads: 2 | Weekly Hits: ⮙2 | Monthly Hits: ⮙2

Research Paper, Economics, India, Volume 10 Issue 9, September 2021

Pages: 1236 - 1241

Impact and Pathways of Transitioning to Solar Energy in Rural India

Rohan Ray

Share this Article

Downloads: 90

Research Paper, Economics, Morocco, Volume 9 Issue 9, September 2020

Pages: 1525 - 1537

Deposit Modelling of Credit Agricole Morocco (CAM)

Idrissi Fatima, EL GORFTI Abdelouahed, EL MOUSSAIF Loubna

Share this Article

Similar Articles with Keyword 'supply'

Downloads: 1 | Weekly Hits: ⮙1 | Monthly Hits: ⮙1

Research Paper, Economics, Uzbekistan, Volume 10 Issue 8, August 2021

Pages: 294 - 296

Analysis of the State of Food Development Industries of the Republic of Karakalpakstan

Tleuov Nietulla Rakhmanovich, Djumaniyazov Ubbiniyaz Ismayl Uli

Share this Article

Downloads: 2 | Weekly Hits: ⮙2 | Monthly Hits: ⮙2

Research Paper, Economics, India, Volume 10 Issue 9, September 2021

Pages: 1236 - 1241

Impact and Pathways of Transitioning to Solar Energy in Rural India

Rohan Ray

Share this Article

Similar Articles with Keyword 'quantity'

Downloads: 1 | Weekly Hits: ⮙1 | Monthly Hits: ⮙1

Research Paper, Economics, Uzbekistan, Volume 10 Issue 8, August 2021

Pages: 294 - 296

Analysis of the State of Food Development Industries of the Republic of Karakalpakstan

Tleuov Nietulla Rakhmanovich, Djumaniyazov Ubbiniyaz Ismayl Uli

Share this Article

Downloads: 102

Research Paper, Economics, Indonesia, Volume 4 Issue 8, August 2015

Pages: 1724 - 1731

Economic Study of Non-Rice Consumption in Supporting Food Security (Study in Muna Regency of Southeast Sulawesi, Indonesia)

L.M. Harafah, La Ode Geo, Azis Muthalib

Share this Article

Similar Articles with Keyword 'market'

Downloads: 180

Dissertation Chapters, Economics, Uzbekistan, Volume 7 Issue 12, December 2018

Pages: 489 - 492

Analyzes of Consumption of Food Products in Gross Domestic Production in Uzbekistan

Umarov Ilkhomjon Yuldashevich

Share this Article

Downloads: 0

Research Paper, Economics, India, Volume 10 Issue 5, May 2021

Pages: 94 - 96

A Study on Possibilities of India for being $5 Trillion Economy till 2025 Considering COVID-19 Crises

Somya Saran

Share this Article

Similar Articles with Keyword 'revenue'

Downloads: 109

Research Paper, Economics, Turkey, Volume 5 Issue 4, April 2016

Pages: 1888 - 1898

Long and Short Term Relationship between Real Exchange Rate, Travel Revenues and Expenditure in Turkey during the Period of 2003:1-2016:1

Nazm CATALBAS

Share this Article

Downloads: 113

Research Paper, Economics, India, Volume 7 Issue 6, June 2018

Pages: 1337 - 1340

Southern States Dependency on Central Transfers?An Analysis

B. Lilly Grace Eunice

Share this Article
Top