Relatively Inelastic Demand
Definition
Relatively inelastic demand refers to a situation where the quantity demanded is not very responsive to changes in price. This means that even if the price of a good or service increases or decreases, the change in quantity demanded is relatively small.
Analogy
Imagine you're at a concert and your favorite artist announces that they will be selling limited edition merchandise. You really want to buy their t-shirt, so no matter how much they increase the price, you are still willing to pay for it because you value it so much. Your demand for the t-shirt is relatively inelastic.
Related terms
Elasticity of Demand: The measure of how responsive quantity demanded is to changes in price. It can be elastic (responsive) or inelastic (not very responsive).
Perfectly Inelastic Demand: A situation where quantity demanded does not change at all when there is a change in price.
Cross Elasticity of Demand: Measures how sensitive the demand for one good is to changes in the price of another good.
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