ENTREPRENEURSHIP

Detailed explanation-1: -What makes a product inelastic? If a price change for a product doesn’t lead to much, if any, change in its supply or demand, it is considered inelastic. Generally, it means that the product is considered to be a necessity or a luxury item for addictive constituents.

Detailed explanation-2: –A change in price has relatively little effect on quantity demanded; the percentage change in quantity demanded is less than the percentage change in the price; the resulting price elasticity has an absolute value less than 1.

Detailed explanation-3: -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. Examples of this are necessities like food and fuel.

Detailed explanation-4: -A perfectly inelastic demand curve is perfectly vertical. This means that a change in price has no effect on the quantity demanded.