Own-Price Elasticity and Total revenue astic Increase(a decrease) in price leads to a decrease(an increase)in total revenue Inelastic a Increase(a decrease)in price leads to an increase(a decrease) in total revenue Unitary Total revenue is maximized at the point where demand s unitary elastic Michael R Baye, Managerial Economics and Business Strategy, 3e. CThe McGraw-Hill Companies, Inc, 1999Michael R. Baye, Managerial Economics and Business Strategy, 3e. ©The McGraw-Hill Companies, Inc. , 1999 Own-Price Elasticity and Total Revenue • Elastic  Increase (a decrease) in price leads to a decrease (an increase) in total revenue. • Inelastic  Increase (a decrease) in price leads to an increase (a decrease) in total revenue. • Unitary  Total revenue is maximized at the point where demand is unitary elastic