If price elasticity is inelastic (less than one), then the quantity demanded is less responsive to a change in price; a 1 percent increase in price results in less than a 1 percent decrease in quantity. Thus total revenue increases. Conversely, a price decrease results in a decrease in revenue. In contrast, if demand elasticity is unitary (equal to one), a 1 percent change in price results in an offsetting 1 percent change in quantity and hence total revenue is unchanged. Finally, if demand is elastic (value greater than one), a small increase in price results in a de- cline in revenue, whereas a small decrease in price results in an increase in revenue. These relations are summarized in Figure 4.4. We discuss these relations in greater detail below.