AP MicroeconomicsElasticity
Inelastic Demand
Inelastic demand is when the quantity demanded changes less than the price changes.
In inelastic demand, the percentage change in quantity demanded is less than the percentage change in price. This means that consumers are not very sensitive to price changes. Goods with few substitutes, such as necessities, often have inelastic demand.
Formula / Example
Price Elasticity of Demand < 1
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