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Inelasticity

Inelasticity Definition

Inelasticity exists when supply and demand are virtually unresponsive to changes in price. For example, a commodity is inelastic when a price change does not create a rise or fall in consumption.

In economics, an inelastic relationship implies that the relationship is still proportional, but with a low constant of proportionality (e.g., price inelasticity).

RELATED TERMS
Elasticity (economics)
RELATED CATEGORIES
Economy







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