Inelastic

What Does It Mean?
What Does Inelastic Mean?
An economic term used to describe the situation in which the supply and demand for a good are unaffected when the price of that good or service changes.
Investopedia Says
Investopedia explains Inelastic
When a price change has no effect on the supply and demand of a good or service, it is considered perfectly inelastic. An example of perfectly inelastic demand would be a life saving drug that people will pay any price to obtain. Even if the price of the drug were to increase dramatically, the quantity demanded would remain the same.
Related Links
  • Economics Basics - Learn economics principles such as the relationship of supply and demand, elasticity, utility, and more!
  • Understanding Supply-Side Economics - Does the amount of goods and services produced set the pace for economic growth? Here are the arguments.
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