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the claim

A price cut increases revenue when demand is elastic.

the verdict
SUPPORTED
the evidence backs this
Recorded sources
6 sources for · 1 against

Counts group repeated records of the same source within each side. They do not measure evidence strength or source independence.

Is it true that a price cut increases revenue when demand is elastic?

Yes. One peer-reviewed source states directly that when demand is elastic, a price decrease increases total revenue. Several other studies confirm the converse case for inelastic goods, that price increases raise revenue, consistent with the same rule.

Verdict: SUPPORTED · 6 sources for, 1 against · Last checked

The private library was unavailable for some searches in this check. Missing library results are not evidence against the claim.

Evidence for · 6
On Teaching Price Elasticity of Demand and Change in Revenue Due to Price Change - A Synthesis With and Without Calculus
2013
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Wei, J. (2013). On Teaching Price Elasticity of Demand and Change in Revenue Due to Price Change - A Synthesis With and Without Calculus. doi.org. https://doi.org/10.2139/ssrn.2366773

Evidence against · 1
Alcohol taxes, tax revenues and the Single European Market
1999
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Alcohol taxes, tax revenues and the Single European Market. (1999). doi.org. https://doi.org/10.2139/ssrn.2199222

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More for · 5
Price Elasticity of Demand for Mississippi State University: 2000-2014
2019
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Chad, D. (2019). Price Elasticity of Demand for Mississippi State University: 2000-2014. eric.ed.gov. https://eric.ed.gov/?id=EJ1204053

The relationship between the price and demand of alcohol, tobacco, unhealthy food, sugar-sweetened beverages, and gambling: an umbrella review of systematic reviews.
2024
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R, B., C, S., S, B., M, J., C, H., N, P., S, K., M, R., & N, S. (2024). The relationship between the price and demand of alcohol, tobacco, unhealthy food, sugar-sweetened beverages, and gambling: an umbrella review of systematic reviews.. doi.org. https://doi.org/10.1186/s12889-024-18599-3

The associations between prices and taxes and the use of tobacco products in Latin America and the Caribbean: a systematic review and meta-analysis.
2025
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GE, G., I, F. C., M, F. M., L, P., & G, P. (2025). The associations between prices and taxes and the use of tobacco products in Latin America and the Caribbean: a systematic review and meta-analysis.. doi.org. https://doi.org/10.1016/j.healthpol.2025.105396

The impact of e-cigarette taxation: a systematic review and meta-analysis on usage, pricing strategies, and public health implications.
2026
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Q, W., Z, Z., C, G., Y, L., Y, Q., Y, Z., Y, F., J, Z., Y, S., Y, J., & L, Y. (2026). The impact of e-cigarette taxation: a systematic review and meta-analysis on usage, pricing strategies, and public health implications.. doi.org. https://doi.org/10.1186/s12916-026-04633-1

Transportation Pricing Strategies for California: An Assessment of Congestion, Emissions, Energy. And Equity Impacts
1996
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Transportation Pricing Strategies for California: An Assessment of Congestion, Emissions, Energy. And Equity Impacts. (1996). escholarship.org. https://escholarship.org/uc/item/723002kt

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