What are the definitions of “Market Demand”, “Inelastic Demand”, and “Elastic Demand”?
Market demand – total demand for a product/service over a specific time Elastic demand refers to a consumers greater or lesser demand for a certain product/service in reverse proportion to changes in price – i.e., they’ll buy more if the price goes down, less if the price goes up. Inelastic demand refers to the consumer’s need for a certain amount of a product/service no matter what the price (food, energy, etc.) The consumer needs a certain amount no matter what and can’t buy proportionately more or less simply because the price goes up or down. If the price goes up 75%, they can’t just buy 75% less. By the same token, they probably won’t buy 50% more if the price goes down 50% since they don’t need that much.
