Inelastic in example sentence

If the supply of oil were completely inelastic (that is, if the world had a fixed number of wells from which oil could be pumped at no cost), the market price would fall by exactly the amount of the tax.

More example sentences with word inelastic

And because the demand curve for life-saving medications is almost perfectly inelastic, raising the price by more than 5,000% is a rational way to maximize profits.

Even before the recent Middle East political shocks, oil prices had risen above $80-$90 a barrel, an increase driven not only by energy-thirsty emerging-market economies, but also by non-fundamental factors: a wall of liquidity chasing assets and commodities in emerging markets, owing to near-zero interest rates and quantitative easing in advanced economies; momentum and herding behavior; and limited and inelastic oil supplies.

Moreover, excise taxes are a convenient source of revenue in developing countries, as they are primarily levied on products such as alcohol, tobacco, gas, vehicles, and spare parts, which involve few producers, large sales volumes, relatively inelastic demand, and easy observability.

Given the inelastic supply of gold, even a small shift in the portfolios of central banks and private investors towards gold increases its price significantly.

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