Definitions for "INELASTIC DEMAND"
means that a price increase or decrease will not significantly alter demand for an item (145)
a situation in which a specific percentage change in price results in a smaller percentage change in quantity demanded; i.e., consumer demand for the product or service is not price-sensitive. Example: a three percent increase in price leads to a one percent decrease in the quantity demanded or a situation where a five percent decrease in price leads to a two percent increase in the quantity demanded. Differentiation driven by advertising is thought to make demand more inelastic. See elastic demand, skimming price policy, and penetration price policy.
When the percentage change in the quantity demanded is less than the percentage change in price. (p. 110)