The Analysis Of Demand And Price Effect On Firm's Revenue

The significance of revenue management is apparent in this time. A firm can manage its costs, so it is possible to influence its revenues to some extent. The paper points on some instruments, which can be used by management. The goal is the use of price demand elasticity effect. A management should know this factor to decide on change of price and then change of revenues. There are numerous different opinions on identification revenue, thus it is necessary to define this properly. The revenue makes up the prime part of firm's yields. It is obvious not only in production of goods but also in service sector.