Inelasticity

Business Definition for: inelasticity
Dictionary of Business Terms
inelasticity ...

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.

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.

That inelasticity implies that exports decline as imports increase, and it therefore means that the offer curve is backward bending.

Short-term economic rent arising from a temporary inelasticity of supply.
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Definition: Short-term economic rent arising from a temporary inelasticity of supply
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Rent ...

See also: Inelastic, Elasticity, Banks, Internal rate of return, Economic rent