Inelastic

What does inelastic mean?

Inelastic is an economic term relating to the dynamics of supply and demand.

Whenever a 1 percent change in price causes less than a 1 percent change in the quantity supplied or demanded, the elasticity calculation will result in a number less than 1.

When this occurs, we say that the supply or demand is inelastic. In this case, the quantity supplied or demanded is not very sensitive to the price.

Inelastic is the opposite of elastic.