If Total Revenue is to Demand Elasticity as a business strategy is to __________?

If Total Revenue is to Demand Elasticity as a business strategy is to pricing strategy, we can understand how they relate. Total Revenue is the money a business makes from selling its products, and it can change depending on how sensitive customers are to price changes, known as demand elasticity. When demand is elastic, lowering prices can increase total revenue because more people will buy the product. On the other hand, if demand is inelastic, raising prices may increase total revenue since people will continue to buy the product despite the higher price. For example, if a coffee shop lowers the price of its lattes and sees a big increase in sales, it shows how understanding demand elasticity can help shape effective pricing strategies.