top of page

Economics explained



Inelastic demand

Inelastic demand

The secret to scoring awesome grades in economics is to have corresponding awesome notes.
A common pitfall for students is to lose themselves in a sea of notes: personal notes, teacher notes, online notes textbooks, etc... This happens when one has too many sources to revise from! Why not solve this problem by having one reliable source of notes? This is where we can help.
What makes TooLazyToStudy notes different?
Our notes:
  • are clear and concise and relevant
  • is set in an engaging template to facilitate memorisation
  • cover all the important topics in the O level, AS level and A level syllabus
  • are editable, feel free to make additions or to rephrase sentences in your own words!

    Looking for live explanations of these notes? Enrol now for FREE tuition!

Inelastic Demand

If a price change causes a relatively small change in the quantity demanded, then demand is said to be price inelastic that is, buyers are not highly responsive to changes in price.

If the PED for a product is less than 1 demand is price inelastic.

This is because the percentage change in quantity demanded is smaller than the percentage change in the price.

Demand is inelastic between points a and c.

A rise in price from $4 to $8 causes a proportionately smaller fall in quantity demanded: from 20 units to 15 units.

Total expenditure rises from $80 (the blue area) to $120 (the pink area)

bottom of page