Inelastic

Definition: When an economist (and no one else really uses this word) says that demand is inelastic, he or she means that the demand for product or service doesn't change quickly even if the price goes up or down.

Supply is said to be elastic (inelastic) if the elasticity exceeds (is less than) 1. The more elastic supply is, the more will a change in price increase production.

Inelastic
Definition: One variable is unresponsive to changes in another.
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INELASTIC - Refers to the economic concept of the inability to quickly adjust supply or demand despite ...
INFANT INDUSTRY ARGUMENT - Argument that industries in the developing and emerging sectors of the econo...

Definitions of ’interest-inelastic investment’ and meaning of ’interest-inelastic investment’ are from the book publication, QFINANCE - The Ultimate Resource, © 2009 Bloomsbury Information Ltd.

Inelasticity
A characteristic that describes the interdependence of the supply, demand and price of a commodity. A commodity is inelastic when a price change does not create an increase or decrease in consumption.

Inelastic
When the SUPPLY or DEMAND for something is insensitive to changes in another variable, such as PRICE. (See ELASTICITY.)
Inequality ...

Inelastic demand A demand relationship in which a given percentage change in price will result in a less-than-proportionate percentage change in the quantity demanded.

inelastic demand demand for which the price elasticity is less than 1. (4)
infant industry argument the view that a new industry may be encouraged by protectionist policies. (18) ...

Inelastic demand - The situation in which, for a given percentage change in price, there is a smaller percentage change in quantity demanded; elasticity less than unity.

INELASTIC DEMAND: Relatively large changes in demand price cause relatively smaller changes in quantity demanded. Inelastic demand means that changes in the quantity demanded are not very responsive to changes in the demand price.

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.

Income inelastic
Having an income elasticity less than one.
Income redistribution argument for a tariff
The argument that tariffs should be used in order to redistribute income towards the poor.

inelasticity Opposite of elasticity. ineligible accounts Accounts receivable that do not satisfy the lender's criteria as specified in a loan agreement. opposite of eligible accounts. inert Having no effect.

If the demand for a product or service is price inelastic-that is, if a given percentage decrease in price results in a lower percentage increase in the quantity demanded-then rapid productivity improvement can result in workers having to leave the ...

If demand for the good or service being sold by the monopolist is highly inelastic, ...

However, demand tends to be quite inelastic for these goods.
Subsidies. Subsidising alternative sources of energy can provide an incentive to increase supply of different fuel sources
Pollution Permits.

On the other hand, in economies when the monetary demand is highly inelastic with respect to interest rates, or interest rates are close to zero (symptoms which imply a liquidity trap), ...

Moreover, in the short run, demand for the more expensive imports remain price inelastic. This is due to time lags in the consumer's search for acceptable, cheaper alternatives.

Although demand for a good may be inelastic at the level of the total market, in a competitive market prices could still be highly elastic for an individual supplier.

Recurrent banking panics caused by overexpansion of credit, inadequate bank reserves, and inelastic currency prompted Congress in 1908 to create the National Monetary Commission to investigate the banking and currency fields and to recommend ...

Since few alternatives existed, people continued to buy gasoline, and demand was thus considered inelastic. Price didn't significantly alter demand.

Depending upon the responsiveness to price changes, demand elasticity can be elastic or inelastic as described by the angle of the demand curve. The flatter the curve, the more price elastic, while a steeper curve would mean more price inelastic.

Short-term economic rent arising from a temporary inelasticity of supply.
Similar financial terms
No similar financial terms found in the dictionary.
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It can be valued at hundreds of dollars an ounce in one instance and then drop to ten percent of the price in a few days. This is the result of the inelastic supply of gold, ...

As the price of luxury items increase, demand for items such as luxury cars and stereo systems usually decline because these goods are not essential and can be delayed. However, for inelastic items such as food and shelter, if the price rises, ...

For many goods this is not the case. Who bears the cost of the tax is determined by the elasticity of the good. For inelastic goods like cigarettes, and gasoline almost all of the tax is paid by the consumer.

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Topic: Business