Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,899,747,430 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Inelastic
(redirected from inelasticity)

    Also found in: Dictionary/thesaurus, Medical, Encyclopedia 0.01 sec.
inelastic
Of or relating to the demand for a good or service when quantity purchased varies little in response to price changes in the good or service. For example, the demand for medicines and medical services is generally inelastic because the quantity purchased by consumers is unresponsive to price changes. Producers of products and services facing inelastic demand curves have an easier time passing on price increases. Compare elastic.
Inelastic

What Does Inelastic Mean?

An economic term used to describe the situation in which the supply and demand for a good or service are not affected when the price of that good or service changes.

Investopedia explains Inelastic

When a price change has no effect on the supply and demand of a good or service, that good or service is considered perfectly inelastic. An example of perfectly inelastic demand would be a lifesaving drug that people will pay any price to obtain. If the price of the drug increased dramatically, the quantity demanded would remain the same.

Related Terms:
•  Bear Market
•  Bull Market
•  Demand
•  Inflation
•  Inventory
Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link 		Feedback
Add definition
Mentioned in?  References in periodicals archive?   Financial browser?   Full browser?
 
All of this clearly demonstrates the price inelasticity of industrial demand.
Silver prices to hit new highs in 2010 by Marc Davis, smallcapmedia.com / Stockhouse
Given the inelasticity of most commodity supply, as it takes years to discover and then begin to mine a commodity, a demand crunch is probably in the making at some stage, as exploration and new mine investment has suffered severely in the downturn.
Instability now, but solid ground lies ahead: after one of the ... by Morgan, M.J. / African Business
One exception is Sexton and Zhang (1996), who find support for high retail bargaining power for agricultural products due to the severe inelasticity of supply.
Slotting allowances and manufacturers' retail sales effort by Foros, Oystein; Kind, Hans Jarle; Sand, Jan Yngve / Southern Economic Journal
 
 
 
Financial Dictionary
?

Terms of Use | Privacy policy | Feedback | Advertise with Us | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.