Assess understanding of price elasticity of demand and its role in firm pricing and revenue decisions. Students should be able to define and calculate elasticity, classify demand as elastic, inelastic, or unitary, predict how price changes affect total revenue, interpret elasticity coefficients numerically, and apply these concepts to pricing strategies (markups, discounts, segmentation), short-run vs long-run considerations, and real-world examples. Include short calculations, analytical reasoning, and brief strategy recommendations.