ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -This means that the demand is inelastic. The demand is inelastic, since the elasticity of demand is less than 1, and also this means that if the price is increased, then the revenue also increases. This is the speciality of inelastic demand.

Detailed explanation-2: -If the value is less than 1, demand is inelastic. In other words, quantity changes slower than price. If the number is equal to 1, elasticity of demand is unitary. In other words, quantity changes at the same rate as price.

Detailed explanation-3: -An inelastic demand or inelastic supply is one in which elasticity is less than one, indicating low responsiveness to price changes. Unitary elasticities indicate proportional responsiveness of either demand or supply.

Detailed explanation-4: -"Inelastic refers” to the static quantity of a good or service when its price changes. Inelastic demand means that when the price of a good or service goes up, consumers’ buying habits stay about the same, and when the price goes down, consumers’ buying habits also remain unchanged.

Detailed explanation-5: -The difference between elasticity and inelasticity of demand is the proportion of this change. If the demand changes by more than the change in price or income, it has elastic demand. If demand changes by less than the change in price or income, it has inelastic demand.