Last summer, the price of gasoline increased by 20 percent and the quantity demanded of gasoline decreased by 5 percent. this indicates that the demand gasoline is inelastic demand.
What is Inelastic demand?
Economists refer to this condition as "inelastic demand," when demand for a good or service remains constant regardless of how much its price increases or decreases. When the quantity desired significantly changes in response to a price adjustment, a good or service is said to have elastic demand. When the amount desired changes little when the price changes, a good or service has inelastic demand. This is often referred to as "amount inelastic demand."
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