In economics, what term describes a demand situation where the quantity demanded changes by a smaller percentage than the change in price?
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Inelastic demand
Essential goods like life-saving medicine or gasoline often have inelastic demand because consumers will continue to buy them even if the price rises significantly.
Also asked as:
- What term describes demand that is relatively unresponsive to price changes, such that the percentage change in quantity is less than the percentage change in price?