We expect the demand for Large-screen TVs to be elastic for several
reasons. Such TVs are expensive relative to total expenditure
for most consumers, there are plenty of close substitutes (TVs
of other sizes and types, keeping your old TV, and getting a life
to name a few) thus we expect demand to be very elastic. Reducing
the price will lead to a larger percentage increase in quantity
demanded, increasing revenues. (Keep in mind that this does not
mean profits increase since production costs would go up as well.)