A further discussion about the theory of price elasticity

This paper discusses the relationship between the price elasticity and the sales income, pointing out there exist the obvious imperfections in traditional theory of price elasticity. The price elasticity calculated with the method of base point or with the method of midpoint can not lead to the conclusion that when the price elasticity exceeds 1, to lower prices can increase the sales income; when the price elasticity is insufficient to 1, the rise in price can increase the sales income. For increasing the sales income, the price adjustment itself must be proceed in certain dimension in terms of other conditions unchanged.