Analysis of price elasticity of demand and income

There exists a question whether price up and down can bring enterprises greater profits or losses based on different price elasticity of demand( E d ), the a rticle points out that there exists a kind of necessary relationship on condition of t he extent of price up and down not beyond the threshold 1 E d -1. There is no necessary relation between elasticity and positive income if the value of price up or down overflows the threshold. When expressing unit elasticity, we can neglect income changes resulting from price changes. Meanwhile, the article holds that enterpr ises will get the greatest incomes when they set suitable price on the point of unit elasticity, on which they organize production. We should be more careful wh en making price decision by means of curve elasticity calculating Ed.