Examples of inelastic goods

Examples of Inelastic Products

The most common goods with inelastic demand are utilities, prescription drugs, and tobacco products. In general, necessities and medical treatments tend to be inelastic, while luxury goods tend to be the most elastic.

Inelasticity of demand refers to certain goods where price changes don’t affect quantity demanded too much, if at all. An inelastic product, then, is one that can have its price change dramatically and the quantity demanded is not significantly affected.

Well, toothpaste is an essential necessity to keep teeth clean. If the price fluctuated a little on toothpaste, most consumers would still be likely to purchase it because of its usefulness. Therefore, toothpaste is essential and inelastic.

Perfectly inelastic products would be something like air or water, and no one can really restrict that at this point in time. The most common products that are inelastic would be food, prescription drugs, and tobacco products. Another product that could be considered close to perfectly inelastic would be gas.