inelastic demand

Definition

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.

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

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

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inefficient portfolio inelastic supply