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TABLE 3

Elasticity, Price Changes and Revenue Changes
Elasticity RangeElasticity Description Price IncreasesPrice Decreases
Ed < -1, |Ed| > 1 ElasticRevenues Fall Revenues Rise
Ed = - 1, |Ed| =1 Unitary ElasticRevenues Unchanged Revenues Unchanged
0 > Ed > -1, |Ed| < 1 InelasticRevenues Rise Revenues Fall