Difference Between Elastic And Inelastic Demand

Difference Between Elastic Demand And Inelastic Demand

The major dissimilarities or difference between elastic and inelastic demand can be highlighted as follows:

1. Introduction

Elastic Demand: Type of demand which responses or changes very quickly if there is a small change in the price or other factors.

Inelastic Demand: Type of demand which does not response or change quickly (very small change or no change) if there is a change in the price and other factors such as income and substitutes.

2. Nature

Elastic Demand: It is responsive or highly variable in nature

Inelastic Demand: It is sticky in nature

3. Applicable

Elastic Demand: This type of demand is applicable for comfort and luxury products 

Inelastic Demand: This type of demand is applicable for necessity goods or daily required products

4. Demand Curve

Elastic Demand: It is flat

Inelastic Demand: It is steeper

5. Substitute Products

Elastic Demand: Substitute products are widely available 

Inelastic Demand: Very few substitutes are available

6. Price Effect

Elastic Demand: If the price is increased, then total revenue will decrease and vice versa. 

Inelastic Demand: If the price is increased then total revenue will also increased and vice versa.

7. Consumers Sensitivity To Price Change

Elastic Demand: Highly sensitive

Inelastic Demand: Less sensitive

   Also Read: 

Difference Between Demand And Supply

8. Quantity

Elastic Demand: Quantity or demand will decrease if the price increases

Inelastic Demand: Quantity will remain same in case of increase in price

9. Examples

Elastic Demand: Television, car, jewelry etc.

Inelastic Demand: Medicine, water, milk etc.

Elastic Demand Vs Inelastic Demand (Comparison Chart)

Basis For Difference	Elastic Demand	Inelastic Demand
Introduction	Kind of demand that responses quickly in case of small change in price or other factors	Kind of demand that does not response quickly in case of change in price or other factors
Nature	Responsive/Variable	Sticky
Applicable For	Comfort and luxury goods	Necessity goods
Demand Curve	Flat	Steeper
Substitute Products	More	Less
Consumers Sensitivity	High	Less
Effect On Quantity	Quantity decreases if price increases	Quantity remains same in case of increase in price
Examples	Television, jewelry, car etc	Medicine, milk, water etc.
Price Effect	Revenue decreases if price is increased and vice versa	Revenue increases if price is increased and vice versa

I hope this post is helpful to understand the difference between elastic demand and inelastic demand and to make comparison between them.