4 ms·

Here’s a explanation of what inelastic demand is. https://www.quora.com/What-is-the-meaning-of-perfectly-inelastic-demand-and-perfectly-elastic-demand https://

• stale2002 8y ago
  Correct, this is exactly the explanation I gave. Here is a quote from one of the answers in the quora question that you posted, saying exactly what I stated: " If demand for a good is perfectly elastic in regards to price, the smallest change in price will change the amount demanded by an infinite value - if the price goes down a single cent, demand will grow to infinity (assuming a normal good whose demand is inversely correlated to price). If demand for a good is perfectly inelastic in regards to price, it means that no matter how the price changes, the demand will stay the same (if the price goes for 1 dollar to 1 million, the demand is the same)." IE, perfectly inelastic demand means that no matter how much supply/price changes, then demand doesn't change. If supply goes up, Nobody buys any more houses (because its inelastic). And price crashes. Inelastic demand applies to both the case of supply going up (therefore price goes down), and the case of supply going down (therefore prices going up). So if supply goes down, prices go way way up, and if supply goes up, then prices go way way down. Or in other words, if there is not enough of so