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https://helpx.adobe.com/photoshop-elements/using/processing-camera-raw-image-files.html
To open a copy of the camera raw image file (with the camera raw settings applied) in Photoshop Elements, click Open Image. You can edit the image and save it in a Photoshop Elements-supported format. The original camera raw file remains unaltered. To cancel the adjustments and close the dialog box, click Cancel.
https://photo.stackexchange.com/questions/45278/does-photoshop-7-support-raw-file-format
Photoshop 7 supports some RAW file formats via the concurrent version of Adobe Camera RAW, mainly those from cameras already in existence at the time PS7 was released. As Adobe updates ACR to support newer cameras, compatibility with the newer versions of ACR also requires newer versions of Photoshop.
https://helpx.adobe.com/camera-raw/kb/camera-raw-plug-supported-cameras.html
With Adobe Camera Raw, you can enhance raw images from many different cameras and import the images into various Adobe applications.Supported applications include Photoshop, Lightroom Classic, Lightroom, Photoshop Elements, After Effects, and Bridge. The table below lists all cameras that the Camera Raw plug-in (versions 1.0 through 12.1) supports.
https://www.dummies.com/photography/photo-software/adobe-photoshop-elements/camera-raw-files-in-photoshop-elements-11/
Photoshop Elements 11 Camera Raw images enable you to post-process your pictures. When you take a picture with a digital camera in Camera Raw format, the camera’s sensor records as much information as it can. When you open a Camera Raw file in Elements, you decide what part of …
https://helpx.adobe.com/camera-raw/using/introduction-camera-raw.html
A camera raw file contains unprocessed, uncompressed grayscale picture data from a digital camera’s image sensor, along with information about how the image was captured (metadata). Photoshop® Camera Raw software interprets the camera raw file, using information about the camera and the image’s metadata to construct and process a color image.
https://feedback.photoshop.com/photoshop_family/topics/elements_7_raw_file_support
It should support RAW files from cameras release before Photoshop Elements 8 shipped. It won't directly support newer cameras - those will need to use the DNG converter for support.
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