ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What Is Inelastic Demand? “Inelastic” 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, consumers’ buying habits stay about the same, and when the price goes down, consumers’ buying habits also remain unchanged.

Detailed explanation-2: -Inelastic demand in economics occurs when the demand for a product doesn’t change as much as the price. A steep demand curve graphically represents inelastic demand. The steeper the curve, the more inelastic the demand for that product or service is.

Detailed explanation-3: -Demand for a good that consumers will continue to buy despite a price increase is inelastic. Demand for a good that is very sensitive to changes in price is elastic. What is Elasticity of Demand? If there are few substitutes for a good, then demand will not likely decrease as price increases.

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

Detailed explanation-5: -Meaning of inelastic supply in English a market situation in which a change in the price of goods or services does not produce a similar change in supply: The perfectly inelastic supply for tickets means that any shift in demand, because many people are interested, leads to a shortage.