A firm that produces yoghurt is given the following information the price elasticity of demand of various flavours: Strawberry (-0.8), Vanilla (-1.0), Pineapple (-2.5). Explain the pricing policy that the firm should adopt for each of the flavours if it wants to increase total revenue. 
The price elasticity of demand is used to measure the responsiveness of the demand in relation to the changes in the price of a product. It is calculated by dividing the percentage change in quantity demand caused by the price change, by the percentage price change itself. A low price elasticity of demand indicates that consumers are not sensitive to the changes in the price of a good, while a high price elasticity of demand can indicate a very strong responsiveness of consumers.