Inelastic
An economic term used to describe the situation in which the supply and demand for a good are unaffected when the price of that good or service changes. Investopedia Says:
When a price change has no effect on the supply and demand of a good or service, it is considered perfectly inelastic. An example of perfectly inelastic demand would be a life saving drug that people will pay any price to obtain. Even if the price of the drug were to increase dramatically, the quantity demanded would remain the same. Related Terms:
Defensive Company
Demand
Economics
Elastic
Elasticity
Equilibrium
Income Elasticity Of Demand
Price Elasticity of Demand
Supply
Total Revenue Test |