Inelastic Demand
Definition
Demand that responds weakly to price changes — price elasticity less than 1 in absolute value. Common for necessities with few substitutes.
Example
Insulin: a 50% price hike barely dents quantity demanded.
Demand that responds weakly to price changes — price elasticity less than 1 in absolute value. Common for necessities with few substitutes.
Insulin: a 50% price hike barely dents quantity demanded.