Definition of Inelastic demand:
A situation in which the demand for a product does not increase or decrease correspondingly with a fall or rise in its price. From the suppliers viewpoint, this is a highly desirable situation because price and total revenue are directly related; an increase in price increases total revenue despite a fall in the quantity demanded. An example of a product with inelastic demand is gasoline.
How to use Inelastic demand in a sentence?
- You may want to try putting some things with an inelastic demand on your shelves that will always be needed.
- My father, who was a rich business man, told me that it was an inelastic demand because the price raised.
- Some products never really change their value and are considered an inelastic demand that you dont have to worry about.
Meaning of Inelastic demand & Inelastic demand Definition