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Relationship between total revenue and price elasticity of demand and explain how even due to good...

Relationship between total revenue and price elasticity of demand and explain how even due to good weather some farmers are worse off?

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Relation in total revenue and price elasticity of demand

In case of elastic demand- In case of elastic demand, total revenue falls. The reason is that in case of elastic demand, seller can sell maximum output at low price. Due to low price , total revenue falls.

In case of inelastic demand- in this total revenue increases. The reason is that in case of inelastic demand firms can sell less output at high price. Due to high price , total revenue increases.

There is situation when even of good weather some farmers are worst off. It is in case of elastic demand

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