The Total Revenue curve shows this relationship between Demand and Marginal Revenue curves. The demand curve is also called the average revenue curve since it shows the average price at which any particular quantity can be sold. The Marginal Revenue curve shows the change in total revenue that accompanies a change in the quantity sold. See graphs showing Total and Marginal Cost curves. Profit-Maximising Price and Quantity.
Price elasticity is the impact of price changes on sales volume.
Demand is elastic if a price increase has a large impact on quantity sold while price is inelastic when the opposite applies. Post manufacturing, or downstream costs are all costs incurred in the value-chain business functions of marketing, distribution, and customer service. Relevance in Pricing decisions Absorption-Cost Pricing Formula. The full cost includes the direct and indirect costs in all categories of the value chain. The Time Horizon Short and Long Run.