Inelastic

An economic term used to describe the situation in which the supply and demand for a good are unaffected when the price of that good or service changes.

When a price change has no effect on the supply and demand of a good or service, it is considered perfectly inelastic. An example of perfectly inelastic demand would be a life saving drug that people will pay any price to obtain. Even if the price of the drug were to increase dramatically, the quantity demanded would remain the same.


Investment dictionary. . 2012.

Look at other dictionaries:

  • inelastic — in‧elas‧tic [ˌɪnɪˈlæstɪk◂] adjective ECONOMICS used to say that a change in something, for example, the price of a product, makes another thing, for example the demand for it, change by only a small amount: • Coffee is a fairly inelastic… …   Financial and business terms

  • Inelastic — In e*las tic, a. 1. Not elastic. [1913 Webster] 2. (Economics) reacting little to changing price; of demand; as, Potatoes have an inelastic demand. [PJC] …   The Collaborative International Dictionary of English

  • inelastic — index inflexible, rigid Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • inelastic — (adj.) 1748, from IN (Cf. in ) (1) not, opposite of + ELASTIC (Cf. elastic). Figurative use attested by 1867 …   Etymology dictionary

  • inelastic — [in΄ē las′tik, in΄i las′tik] adj. 1. not elastic; inflexible, rigid, unyielding, unadaptable, etc. 2. Econ. not responding to changes in price: said of the demand for, or supply of, particular goods or services inelasticity [in΄ē΄las tis′ə tē] n …   English World dictionary

  • inelastic — adjective /ˌɪnəˈlæstɪk/ lacking elasticity; inflexible, unyielding He spoke languidly, and only those few words, like a watch with an inelastic spring, that just ticks a moment or two and stops again …   Wiktionary

  • inelastic — adjective Date: 1748 not elastic: as a. slow to react or respond to changing conditions b. inflexible, unyielding • inelasticity noun …   New Collegiate Dictionary

  • inelastic — inelasticity /in i la stis i tee/, n. /in i las tik/, adj. 1. not elastic; lacking flexibility or resilience; unyielding. 2. Econ. relatively unresponsive to changes, as demand when it fails to increase in proportion to a decrease in price. Cf.… …   Universalium

  • inelastic — in·elas·tic .in i las tik adj not elastic in·elas·tic·i·ty i .las tis ət ē, .ē .las , tis tē n, pl ties * * * in·elas·tic (in″e lasґtik) lacking elasticity …   Medical dictionary

  • inelastic — Synonyms and related words: adamant, adamantine, cast iron, dour, firm, flinty, grim, hard, hard core, immovable, immutable, implacable, impliable, inductile, inexorable, inextensible, inextensile, inextensional, inflexible, intractable,… …   Moby Thesaurus

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