inelastic demand


Demand for a good or service that does not increase or decrease in response to changes in price. Demand for goods that are life necessities, such as water, or economic necessities, such as fuel, tends to be inelastic, since people cannot greatly change how much of these goods they consume, even if the price changes dramatically.

Use inelastic demand in a sentence

You need to figure out if your product has an inelastic demand and find the best way to market it.

​ Was this Helpful? YES  NO 6 people found this helpful.

Students in our schools must eat the school lunch, so we must always have enough because it is an inelastic demand.

​ Was this Helpful? YES  NO 3 people found this helpful.

There was some inelastic demand we had to look at because changes in price were always important for us and our well being.

​ Was this Helpful? YES  NO 11 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
inefficient portfolio inelastic supply