How is inelastic demand characterized?

Inelastic demand is characterized by a minor change in demand in response to price changes. This means that when the price of a product rises or falls, the quantity demanded changes only slightly. Consumers of inelastic goods are often less sensitive to price fluctuations because these goods are typically necessities or have few available substitutes. For instance, when the price of essential medications increases, the demand may not decrease significantly because consumers still need these medications regardless of the price.

In contrast, significant changes in demand with price increases or constant demand regardless of price are not characteristic of inelastic demand. The idea that demand increases with a price decrease would relate to elastic demand, where consumers are more responsive to price changes. Overall, the essence of inelastic demand lies in the limited responsiveness of quantity demanded to price changes, which aligns with the notion of a minor change in demand when prices fluctuate.