The Bill of Rights. In 1789, Madison, then a member of the newly established U.S. House of Representatives, introduced 19 amendments to the Constitution. On September 25, 1789, Congress adopted 12 of the amendments and sent them to the states for ratification. Ten of these amendments, known collectively as the Bill of Rights, were ratified and became part of the Constitution on December 10, 1791.
If demand is inelastic, we know that the increase in price will cause quantity demanded to fall just a little. When price goes up, quantity demanded goes down, but not by much. To be precise, when demand is inelastic, the percentage change in quantity demanded is smaller than the percentage change in price.f price goes up and quantity remains unchanged, total revenue will rise. But the second effect is that quantity in fact will not remain unchanged. When price goes up, the quantity demanded (and therefore the quantity sold) goes down. And by itself, the lower quantity causes total revenue to go down.
Letâs think for a minute. A price elasticity ofdemand of 1 means that a one-percent increase in the price leads to anone-percent decrease in quantity demanded. â¢ So if the price increase by 10 percent, quantity sold will decrease by 10percent.â¢ So quantity sold at $1.10 will be 900 and total revenue will beTotal revenue = $1.10 Ã 900 = $990 â $1000 5 More generally ...â¢ If demand for a good is elastic (the price elasticity of demand is greaterthan 1), an increase in price reduces total revenue. In this case, theprice eï¬ect is weaker than the quantity eï¬ect. So if the price increase by 10 percent, quantity sold will decrease by 10percent. â¢ So quantity sold at $1.10 will be 900 and total revenue will beTotal revenue = $1.