Inelastic Demand

Inelastic demand refers to a situation where the quantity of a product or service that consumers buy doesn’t change much when its price increases or decreases. This means people will continue to purchase roughly the same amount regardless of price changes, often because the item is essential or has few substitutes. For example, gasoline tends to have inelastic demand because people still need to drive even if prices go up. In such cases, changes in price have a relatively small impact on the total amount sold.