inelastic supply

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.)


Nearby words

  1. inegalitarian,
  2. inelastic,
  3. inelastic collision,
  4. inelastic demand,
  5. inelastic scattering,
  6. inelegance,
  7. inelegancy,
  8. inelegant,
  9. ineligible,
  10. ineloquent

The New Dictionary of Cultural Literacy, Third Edition Copyright © 2005 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.