substantial elasticity. Conversely,

substantial elasticity. Conversely, if a 2 percent increase produced only a 1 percent decline in the quantity demanded, then price elasticity is - ½ indicating that demand is inelastic. If a 2 percent price increase leads to a 2 percent decline in quantity, price elasticity is unitary. In such a case the seller's total revenue stays the same because the smaller quantity sold is offset by the higher price.