Glossary · Micro · Elasticity

Inelastic demand

Demand where quantity barely responds to price, so PED is less than 1. Necessities with few substitutes, like fuel or insulin, have inelastic demand and a steep-looking curve.

Taught in: Elastic vs Inelastic — and How to Calculate

Related terms

Elastic demandPrice elasticity of demand (PED)Total revenue test

More from elasticity

Cross-price elasticity of demand (XED)Determinants of PEDDeterminants of PESIncome elasticity of demand (YED)Luxury goodMidpoint formulaPerfectly elastic demand

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