ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -"Inelastic demand” is a term that economists use to refer to a situation where demand for an item remains the same, no matter how far its price rises or falls.

Detailed explanation-2: -An inelastic demand is one in which the change in quantity demanded due to a change in price is small.

Detailed explanation-3: -1. What is Perfectly Inelastic Demand? Perfectly Inelastic Demand means that there is no change in the quantity of the product demanded when the price changes. This means that the supplier can charge whatever price they want and people will still be willing to buy that product.

Detailed explanation-4: -a) If demand is price inelastic, then increasing price will decrease revenue.

Detailed explanation-5: -An elastic demand is one in which the change in quantity demanded due to a change in price is large. An inelastic demand is one in which the change in quantity demanded due to a change in price is small. If the formula creates an absolute value greater than 1, the demand is elastic.