# What is inelastic demand?

There are many types of demands, and its graphic representation determines whether or not there is a relationship with the changes that occur or the type of good in question. Today we are going to talk about a specific type of demand.

The inelastic demand is the one that does not change when the price changes. That is, if we vary the price of the demand for a certain good or service, your demand will not receive major changes (it will vary less than proportional).

## Inelastic demand formula

To know if this happens or not, if we change the price of a good by 20% and, on the contrary, its demand is reduced by less than 20%, we are facing a demand of this type. The elasticity of said demand is known as the price elasticity of demand, and whose calculation is: Where we have:

Qd = Quantity demanded of a certain good

P = Price of the good

As we can see, these are percentage measures, which allows comparison and obtain a value that does not depend on other values ​​in order to be compared. If the result in this formula is less than 1, we are facing an inelastic demand; if she is older, the demand is elastic.

In order to check whether or not a certain good has inelastic demand, there are certain factors that determine it. Factors that can make demand inelastic are:

• The null or little existence of substitutes for a certain good, which implies that the elasticity of demand is lower
• When a good is considered essential, it will have an inelastic demand (a classic example is insulin)
• Demand will be inelastic when we are talking about the short term, although this is not always the case
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