INELASTIC-DEMAND

Etymology

The term 'inelastic-demand' combines 'inelastic' meaning unchanging or inflexible, and 'demand' referring to the quantity of a good or service that consumers are willing to purchase at a given price.

Definition

Inelastic-demand is a concept in economics that describes the scenario where the quantity demanded for a product does not vary significantly in response to changes in its price. This means that even if the price of the good or service increases or decreases, the demand for it remains relatively constant.

Historical Context

The concept of inelastic-demand has been a key focus in economic theory and has been studied extensively by economists to understand consumer behavior and market dynamics. It plays a crucial role in pricing strategies, taxation policies, and government regulations.

Cultural Significance

Inelastic-demand has significant implications for businesses, as products with inelastic-demand are less sensitive to price changes. Understanding the elasticity of demand helps companies make informed decisions regarding pricing, production, and marketing strategies.

Related Concepts

• Elasticity of Demand: Contrary to inelastic-demand, elasticity of demand refers to the degree to which the quantity demanded for a good or service changes in response to price fluctuations.
• Price Elasticity: A measure that quantifies the responsiveness of quantity demanded to changes in price.

See Also

• Investopedia - What Is Inelastic? Definition, Calculation, and Examples of Goods
• Cambridge Dictionary - INELASTIC DEMAND | English meaning
• Economics Help - Inelastic demand
• Corporate Finance Institute - Inelastic Demand - Definition, Formula, Calculation
• Investopedia - Understanding Elasticity vs. Inelasticity of Demand