If demand is inelastic, total revenue increases as price increases. If demand is elastic, total revenue decreases as price increases. In the case of supply, total revenue does not depend upon elasticity. Why?

Elasticity of demand is a measure of how sensitive the quantity demanded of a good or service is to a change in its price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price. If the elasticity is greater than 1, the demand is said to be elastic, meaning that a change in price leads to a proportionally larger change in quantity demanded. If the elasticity is less than 1, the demand is inelastic, and a change in price leads to a proportionally smaller change in quantity demanded.

Total revenue is the product of price and quantity demanded. For inelastic demand, an increase in price leads to a smaller decrease in quantity demanded, resulting in a net increase in total revenue. Conversely, for elastic demand, an increase in price leads to a larger decrease in quantity demanded, resulting in a net decrease in total revenue.

Similar to demand elasticity, the elasticity of supply is a measure of how sensitive the quantity supplied of a good or service is to a change in its price. It is calculated as the percentage change in quantity supplied divided by the percentage change in price. The higher the elasticity, the more responsive quantity supplied is to changes in price.

Total revenue is a function of the price and quantity demanded, while elasticity of supply focuses on the relationship between price and the quantity supplied by producers. The main reason total revenue does not depend on supply elasticity is that total revenue is determined by the demand side of the market. Both inelastic and elastic demands can exist for a product, and the impact on total revenue following a price change largely depends on the consumers' sensitivity to price changes (demand elasticity), rather than how suppliers react to the price changes (supply elasticity). Supply and demand interact to determine the equilibrium price and quantity in a market, but the elasticity of supply has no direct impact on the calculation of total revenue.