Google
Monday 
October 21, 2024 

AmosWEB means Economics with a Touch of Whimsy!

AmosWEBWEB*pediaGLOSS*aramaECON*worldCLASS*portalQUIZ*tasticPED GuideXtra CrediteTutorA*PLS
EQUITY: This has two, not totally unrelated, uses in our wonderful world of economics. The first is as one of the two micro goals (the other being efficiency) of a mixed economy. This use relates to the "fairness" of our income or wealth distributions. The second use of the term equity means ownership, especially the ownership of a business or corporation.

Visit the GLOSS*arama


INELASTIC DEMAND:

The general elasticity relation in which relatively large changes in price cause relatively small changes in quantity demanded. Large changes in price cause relatively small changes in quantity demanded or the percentage change in quantity demanded is smaller than the percentage change in price. This characterization of elasticity is most important for the price elasticity of demand. Inelastic demand is one of two general elasticity relations for demand. The other is elastic demand.
An inelastic demand relation is NOT a very responsive, or stretchable, relation. The inelastic demand relation is most often directed toward demand in terms of the price elasticity of demand. In this context, demand is said to be inelastic if the percentage change in quantity is smaller than the percentage change in price. This means that buyers are not responsive to price changes.

An inelastic demand relation can fall into one of two categories--perfectly inelastic and relatively inelastic.

  • Perfectly Inelastic: Perfectly inelastic means that quantity demanded is unaffected by any change in price. In other words, the quantity is essentially fixed. It does not matter how much price changes, quantity does not budge. Perfectly inelastic demand occurs when buyers have no choice in the consumption of a good.

  • Relatively Inelastic: Relatively inelastic means that relatively large changes in price cause relatively small changes in quantity. In other words, quantity is not very responsive to price, but it does change. More specifically, the percentage change in quantity demanded is less than the percentage change in price. Relatively inelastic demand occurs when buyers are only able to choose among a small number of imperfect substitutes-in-consumption.

<= INELASTICINELASTIC SUPPLY =>


Recommended Citation:

INELASTIC DEMAND, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2024. [Accessed: October 21, 2024].


Check Out These Related Terms...

     | inelastic supply | inelastic | elastic | elastic supply | elastic demand | perfectly elastic | perfectly inelastic | relatively elastic | relatively inelastic | unit elastic | elasticity alternatives | elasticity alternatives, demand | elasticity alternatives, supply |


Or For A Little Background...

     | elasticity | coefficient of elasticity | price elasticity of demand | demand | law of demand | demand curve |


And For Further Study...

     | elasticity and demand slope | elasticity and supply intercept | demand elasticity and total expenditure | price elasticity of supply | income elasticity of demand | cross elasticity of demand | elasticity determinants |


Search Again?

Back to the WEB*pedia


APLS

BLACK DISMALAPOD
[What's This?]

Today, you are likely to spend a great deal of time browsing through a long list of dot com websites wanting to buy either a microwave over that won't burn your popcorn or a T-shirt commemorating the first day of winter. Be on the lookout for rusty deck screws.
Your Complete Scope

This isn't me! What am I?

Mark Twain said "I wonder how much it would take to buy soap buble if there was only one in the world."
"A stumble may prevent a fall. "

-- Margaret Thatcher, British prime minister

AMEX
American Stock Exchange
A PEDestrian's Guide
Xtra Credit
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.

User Feedback



| AmosWEB | WEB*pedia | GLOSS*arama | ECON*world | CLASS*portal | QUIZ*tastic | PED Guide | Xtra Credit | eTutor | A*PLS |
| About Us | Terms of Use | Privacy Statement |

Thanks for visiting AmosWEB
Copyright ©2000-2024 AmosWEB*LLC
Send comments or questions to: WebMaster