Assess students' ability to analyze how price elasticity of demand influences firm pricing and revenue decisions. Scope includes interpreting elasticity coefficients (elastic, inelastic, unit elastic), calculating effects on total and marginal revenue from price changes, applying elasticity to pricing scenarios (price cuts, increases, discounts, bundling), distinguishing short-run versus long-run responsiveness, and recommending optimal pricing strategies across market contexts. Tasks may require brief calculations, graph interpretation, and written justification of recommendations.