Is elastic or inelastic demand better for a supplier's profitability? Explain.© BrainMass Inc. brainmass.com April 1, 2020, 8:16 pm ad1c9bdddf
An inelastic demand would be better for a supplier's profitability. An inelastic demand is a demand that is not affected by certain variables, including price. When the price increases, demand remains constant. An elastic demand is affected by price. A rise in price would typically decrease the demand, and a decrease in price would typically increase the demand. Examples of inelastic demand include life-saving medications, electricity, and other expenses where price does not affect demand. The ...
Is elastic or inelastic demand better for a supplier's profitability? Explain.