What Is an Elastic or Inelastic Demand Curve?. The demand curve is a concept in economics that plots the price of a product or service against how much of the product or service people buy.

In general, essential items are price inelastic, and luxury products are price elastic. Importance of Price Elasticity Whether the demand for a product is price elastic or inelastic is important ...

Inelastic stands in contrast to elastic, ... A perfectly elastic demand curve is depicted as a horizontal line because any change in price causes an infinite change in the quantity demanded.

If the price elasticity of demand for corporate bonds was less than one, which would happen if demand changed by less than the 5% change in price, corporate bonds would have an inelastic demand.

For the product with high elasticity of demand, the downward-sloping demand curve appears flatter, and for every change in price, there is a large change to the quantity demanded.

The price elasticity of demand measures how demand changes in response to changes in price. For example, some products have very inelastic demand, such as certain Lego Star Wars figures.