Inelastic demand

Inelastic demand,

Definition of Inelastic demand:

  1. 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?

  1. You may want to try putting some things with an inelastic demand on your shelves that will always be needed.
  2. My father, who was a rich business man, told me that it was an inelastic demand because the price raised.
  3. 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