Inelastic Goods

Inelastic goods are products whose demand remains relatively stable despite changes in price. When the price of such items goes up or down, consumers tend to buy about the same amount because these goods are essential or lack substitutes, like medications or basic utilities. Their demand doesn't fluctuate significantly with price changes, making them less sensitive to price adjustments. Understanding inelastic goods helps businesses and policymakers predict how changes in pricing might impact sales and revenue, especially for critical products that people need regardless of cost.