Inelastic demand means that when the price of a good or service goes up, consumers’ buying habits stay about the same, and when the price goes down, consumers’ buying habits also remain unchanged.

Inelastic products are usually necessities without acceptable substitutes. As such, these products are things that people need in their day-to-day lives regardless of economic conditions.

Firms with inelastic demand, like Sanofi with rare disease treatments, can often price higher effectively. Investor Alert: Our 10 best stocks to buy right now › ...

With inelastic demand, demand is more resilient to changes in price and less likely to get pulled one way or the other. Of course, price isn't the only thing that can pull on demand.

An inelastic economic factor changes very little when another element is significantly altered. For example, if the price of gasoline were to go up significantly, demand wouldn't suddenly tank.