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Elasticity and revenue: do we need a reappraisal?


  • Manuel Sánchez-Moreno

    () (Universitat de València)

  • J. Ramón Ruiz-Tamarit

    () (Universitat de València)


The relationship between price-elasticity of demand, price variations and total revenue changes might be considered as one of the most widely accepted results arising from consumer theory. Recently, however, this relationship has been put under suspicion on the basis of a misinterpretation of what economists have in mind when writing about it. In this paper we try to clarify concepts incorporating new elements into discussion with the aim of reaffirming the validity of this relationship.

Suggested Citation

  • Manuel Sánchez-Moreno & J. Ramón Ruiz-Tamarit, 2002. "Elasticity and revenue: do we need a reappraisal?," Economics Bulletin, AccessEcon, vol. 4(17), pages 1-7.
  • Handle: RePEc:ebl:ecbull:eb-02d00002

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    References listed on IDEAS

    1. Antonio Quesada, 2002. "Elasticity and revenue: a reappraisal," Economics Bulletin, AccessEcon, vol. 4(13), pages 1-5.
    2. repec:ebl:ecbull:v:4:y:2002:i:13:p:1-5 is not listed on IDEAS
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    Price elasticity;

    JEL classification:

    • D0 - Microeconomics - - General


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