{"id":1360,"date":"2021-04-28T00:57:19","date_gmt":"2021-04-28T00:57:19","guid":{"rendered":"https:\/\/enorcerna.com\/wiki\/what-is\/inelastic-demand\/"},"modified":"2021-04-28T00:57:19","modified_gmt":"2021-04-28T00:57:19","slug":"inelastic-demand","status":"publish","type":"post","link":"https:\/\/enorcerna.com\/wiki\/what-is\/inelastic-demand\/","title":{"rendered":"Inelastic demand"},"content":{"rendered":"
\n

What is inelastic demand?<\/h2>\n

Inelastic demand is that price elasticity of demand where the demand suffers little or no variation<\/strong> when there is a change in the price of the product.<\/p>\n

When a product with inelastic demand is given, the variation in its price does not represent a significant change in its demand<\/strong>but only a proportionally insignificant change. This type of demand usually occurs with products that do not have substitute goods.<\/strong><\/p>\n

In this way, if the price of a product with inelastic demand increases, its demand will decrease only a little, or not at all<\/strong>, so it will be almost priceless.<\/p>\n

Inelastic demand graph<\/h2>\n

In the graph below, it can be seen that although the price increases, the fall in demand is not so significant.<\/p>\n

\"Inelastic<\/p>\n

Inelastic demand graph.<\/p>\n<\/div>\n

Although it is difficult to find a good that applies to this concept, we could say that insulin for diabetics, for example, is a perfectly inelastic good, since it is necessary for them to live.<\/p>\n

That said, the perfectly inelastic demand<\/strong> is graphed as follows:<\/p>\n

\"Graph<\/p>\n

Graph of perfectly inelastic demand.<\/p>\n<\/div>\n

Inelastic demand and elastic demand<\/h2>\n

Although these terms often seem similar, there are important differences between them:<\/p>\n\n\n\n\n\n\n
Elastic demand<\/strong><\/th>\nInelastic demand<\/strong><\/th>\n<\/tr>\n<\/thead>\n
If the price changes, the demand is affected.<\/td>\nAlthough the price varies, the demand is not affected.<\/td>\n<\/tr>\n
It is applied to goods with substitutes.<\/td>\nIt is applied to essential goods.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Example of goods with inelastic demand<\/h2>\n

Some examples of goods that have inelastic demand are the following:<\/p>\n

    \n
  • The Water<\/strong>, since it is a necessary good to live and that no matter how much it increases in price, it will not stop consuming.<\/li>\n
  • Medicines<\/strong> necessary to live, such as insulin for people with diabetes.<\/li>\n
  • Cigarettes and other additives<\/strong>, since it does not matter that they vary in price, whoever consumes them frequently will acquire them the same.<\/li>\n
  • The natural gas<\/strong> it is also an inelastic good.<\/li>\n<\/ul>\n<\/div>\n\n\n
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    What is inelastic demand? Inelastic demand is that price elasticity of demand…<\/p>\n","protected":false},"author":1,"featured_media":1361,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-1360","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-what-is"],"_links":{"self":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts\/1360","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/comments?post=1360"}],"version-history":[{"count":0,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts\/1360\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/media\/1361"}],"wp:attachment":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/media?parent=1360"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/categories?post=1360"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/tags?post=1360"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}