What Is Inelastic Demand? Inelastic demand is an economic term referring to the static quantity of a good or service when its price changes. Inelastic demand means that when the price goes up ...

Firms with inelastic demand, like Sanofi with rare disease treatments, can often price higher effectively. Investor Alert: Our 10 best stocks to buy right now › ...

Inelastic demand and elastic demand represent the degree of changes in demand due to economic factors such as price changes, income levels, and substitution.

Inelastic demand means the consumer purchases the same quantity of a product regardless of the price change. The producer can maintain the production volume by increasing the price by the amount ...

He cited goods with inelastic demand. One is gasoline, he said. “You commute, you drive, you take your kids to school and your demand for that is inelastic to the price,” he said.

With inelastic demand, demand is more resilient to changes in price and less likely to get pulled one way or the other. Of course, price isn't the only thing that can pull on demand.

The price elasticity of demand measures how demand changes in response to changes in price. For example, some products have very inelastic demand, such as certain Lego Star Wars figures.

With inelastic demand, demand is more resilient to changes in price and less likely to get pulled one way or the other. Of course, price isn’t the only thing that can pull on demand.

But the moral of inelastic demand is none of these businesses, big or small, stand to lose business over their abuses. There is an important backstory, however.

Sudden demand surges or supply chains snarls will drive prices up quickly. Businesses face two issues when this happens, First, when a price rises sharply, how long will it take for increased ...

In this example, demand for Company A’s product is more inelastic than for Company B’s product. The following table shows these concepts.