Inelastic: If a price changes and you do not change how much of a good that you buy, it has an inelastic demand. If the elasticity of demand is under 1, it has inelastic demand.
- For example, gas has an inelastic demand since if your car runs out of gas, just because the price of gas went up, you are still going to put it in your car. There is no substitute for that good.
- For example, if you want UGGs yet they are out of your price range, then you can buy FUGGs. It’s an alternative which is worth less.