3 ms·
Why do people keep using the term "inelastic", why not just say 'rigid', 'stiff', 'fixed', - I assume they are trying to state they dont ebb/flow?
by samstave 4y ago
Why do people keep using the term "inelastic", why not just say 'rigid', 'stiff', 'fixed', - I assume they are trying to state they dont ebb/flow?
- clnq 4y agoNo, "inelastic demand" is a specific term in economics. It means that demand for a product does not change much or at all depending on its price. Think about bathroom tissue, tobacco and diesel. Whether the price goes up 20% or down 20%, about the same amount of the product will be sold. Elastic demand is the opposite. Some products have elastic demand, like luxuries and durables. An expensive car trim might be very price-sensitive because it is a luxury product. People will buy much fewer of those in austere times. They may buy fewer washing machines, too, because these products are durables. They are often bought "as an upgrade" or when one broke but could be repaired for cheaper.