The assignment content discusses the concept of price elasticity of demand and its impact on revenue. It explains that elastic demand leads to an increase in revenue when prices are reduced, while inelastic demand results in a decline in revenue when prices are increased. The example provided is of Rosie's Airline, which sells non-stop flight tickets from San Diego to Phoenix at $50 per ticket. By reducing the price by $5, the airline sells 80 tickets compared to 75 previously, but total revenue may not increase due to inelastic demand.