inelastic supply

Cultural  

1. Supply whose percentage change is less than a percentage change in price. For example, if the price of a commodity drops twenty-five percent and supply decreases by only two percent, supply is said to be inelastic. (See elasticity.)

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Example Sentences

“As a standard matter of economics, if you have inelastic supply and experience a surge in demand, you will see a rise in prices,” said Phil Levy, the chief economist at Flexport, a logistics company.

From New York Times • Mar. 21, 2022

That's because clean energy technologies, such as wind farms or solar panels, "do not rely on traditional fuels of inelastic supply and demand like oil and gas to operate."

From Salon • Nov. 17, 2021

The old national banking system was inelastic in two ways: first, it provided an inelastic supply of deposit credit; second, it provided an inelastic supply of currency or bank notes.

From Problems in American Democracy by Williamson, Thames Ross