ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -If the price for an inelastic good is lowered, the demand for that good does not increase, resulting in less overall revenue due to the lower price and no change in demand.

Detailed explanation-2: -Inelastic Demand Note that a change in price results in only a small change in quantity demanded. In other words, the quantity demanded is not very responsive to changes in price.

Detailed explanation-3: -"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-4: -An inelastic demand or supply curve is one where a given percentage change in price will cause a smaller percentage change in quantity demanded or supplied.

Detailed explanation-5: -Key Takeaways If price elasticity is greater than 1, the good is elastic; if less than 1, it is inelastic. If a good’s price elasticity is 0 (no amount of price change produces a change in demand), it is perfectly inelastic.