---
title: Inelastic
description: A good or service is inelastic when the demand for it is not affected when its prices go up or down.
---

[Realized 1031 Glossary of Terms ](https://www.realized1031.com/glossary)

# [Inelastic](https://www.realized1031.com/glossary/inelastic)

 Written by [The Realized Team](https://www.realized1031.com/glossary/author/the-realized-team) | Jun 20, 2022 12:00:00 PM

A good or service is inelastic when the demand for it is not affected when its prices go up or down. In contrast, an elastic good that has a 10% price increase may also see a 10% drop in demand. This good is said to have a 1:1 ratio in demand and price movements, or an elasticity of 1 or greater. Inelastic goods have an elasticity of less than 1.

If the price of a good or increases, why would a consumer continue buying that good? Why not buy a different good? Unlike elastic goods, inelastic goods do not have substitutes, so consumers have no choice but to buy at a higher price. Inelastic goods consist of medication, cigarettes, electricity, and gasoline.

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