An elastic demand curve means that a change in price has a large effect on buying, while an inelastic demand curve means that a price change has less effect on buying.

Understanding the difference between elasticity and inelasticity of demand can help you identify better investments.

Learn how income elasticity affects demand with our guide on definitions, formulas, and types, helping you understand ...

Elasticity is especially important for investors. A company that specializes in inelastic products will likely be a relatively steady investment, regardless of economic conditions.

Relatively elastic demand means you can expect more change in demand than in the price of a product or service. Perfectly inelastic demand means that demand remains constant regardless of price.

Elasticity of demand refers to the sensitivity of quantity demanded with respect to changes in another outside factor. There are many types of elasticity of demand. The one most relevant to ...

Price elasticity plays an important role in business. If a product price is raised or lowered and demand changes little, it is price inelastic. If demand changes considerably, it is price elastic.