As a Production Manager of a manufacturing firm that produces both an elastic good and an inelastic good, illustrate to a new board of the organisation the relationship between price elasticity of demand and total revenue, and how the elasticity concept can be used to maximise revenues of both commodities? Illustrate your answer using relevant diagrams of elastic and inelastic goods.

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As a Production Manager of a manufacturing firm that produces both an
elastic good and an inelastic good, illustrate to a new board of the
organisation the relationship between price elasticity of demand and
total revenue, and how the elasticity concept can be used to maximise
revenues of both commodities? Illustrate your answer using relevant
diagrams of elastic and inelastic goods.

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