a method of estimating the price elasticity of demand by observing the change in total revenue that results from a change in the price, when all other influences on the quantity sold remain the same
-price cut increase total revenue, demand is elastic
-price cut decreases total revenue, demand is inelastic
-price cut leaves total revenue unchanged, demand is unit elastic
-price rise increase total revenue, demand is inelastic
-price rise decreases total revenue, demand is elastic
-price rise leaves total revenue unchanged, demand is unit elastic