A product has inelastic demand when the demand for a product has no change when there is a slight change in price. An example of an inelastic product would be a car. If the price for certain parts of a car go up the price of the car will stay relatively the same and the demand of these cars are still going to be the same. A product would be considered to have an elastic demand if when the price of a product goes up or down so does the demand of that product. For example, if the price for gum was to drastically increase, the demand for gum would decrease; which then in turn would lead to the demand of mints to rise.
This graph shows that for and inelastic product that when the price increases or decreases, the demand (quantity) of that product shows little change. But on the other side, for elastic demand, when price goes up and down, the demand of the product also will change drastically.
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