What Is an Inelastic Demand?
Inelastic demand refers to demand without price elasticity, or inelastic demand (price-inelasticdemand), and refers to the situation where the absolute value of demand price elasticity is less than 1.
Inelastic demand
Right!
- Chinese name
- Inelastic demand
- Foreign name
- priceinelasticdemand
- Also known as
- Demand without price elasticity
- Explanation
- Absolute value elasticity of demand is less than 1
- Inelastic demand refers to demand without price elasticity, or inelastic demand (price-inelasticdemand), and refers to the situation where the absolute value of price elasticity of demand is less than 1.
- In this case, when prices fall, total returns fall; when prices rise, total returns rise. One extreme of demand without price elasticity is demand without price elasticity, which means that when the price rises or falls, the quantity of demand does not change at all (see demand with price elasticity and demand for unit elasticity).