A firm needs to know the price elasticity of demand for a good before making price changes because the change in revenue after a price change depends on the elasticity of demand for the good. If the demand is elastic, the % change in demand is higher than the % change in price. So, in case the good has elastic demand, increasing price reduces revenue and decreasing the price increases revenue. On the other hand, if the demand is inelastic, the % change in demand is lower than the % change in price. So, in case the good has inelastic demand, increasing price increases revenue and decreasing the price decreases revenue.
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