Step 3 - What determines E L A S T I C I T Y? As we have seen above it is impoxtant to a company to have an idea of the value of the elasticity of demand of its good or service as it will affect what happens to their total revenue as price changes. What should the company aim to do with their price in each of the circumstances below? ' Elasticity Which change in price would increase total revenue?? (Increase or decrease?) _ _ If the company wants to estimate the value of the price elasticity of their product, then they need to judge it against the following criteria: . Number of . Luxuries vs. - Percentage of spent on good: Judge the products in the table below to decide whether you think they will be elastic or inelastic: Silt_ __