Application: Vanity Plates and the Elasticity Of DemandLOADING... Elasticity and Vanity Plates. Suppose the price elasticity of demand for vanity plates in your state is . 5 0 . ? ? The initial price is ? $ 4 0 ? ? and the initial quantity is 1 6 0 0 ? ? plates per week. Suppose the state increases the price by 5 ? ? percent b. The increase in price ? total revenue because demand is ? elastic inelastic .