Answer
With the plurality-with-elimination method, the candidate with the fewest number of first-place votes is eliminated in each round. The other candidates which were ranked below that candidate on each ballot move up one spot on that ballot. The rounds continue in this way until only one candidate remains, and this candidate is declared the winner.
Work Step by Step
It is advantageous to rank the candidates when using this method, because remaining candidates can move up one step on the ballots after each candidate is eliminated. It is quite possible for a candidate which is ranked second or third on many ballots to end up winning the election when using the plurality-with-elimination method.