Price elasticity of demand is an important concept. With appropriate examples, explain how this concept is related to total revenue. (Hint: When providing example, select a product whose demand may be relatively elastic; therefore, lowering its price may lead to increase in total revenue.)

The price of elasticity demand is related to total revenue because of profits. A good example to me would be Formula for my son. We used Similac briefly and I would buy the 30oz cans from the target and the price is $36.99. This Formula product would be relatively elastic because if the prices lowered then people in my situation would be encouraged to buy more which was raise the total revenue. More people would find it affordable and consider it an option if they were trying to choose between different brands or if they chose not to breastfeed.