What type of demand shows minimal response to price changes?

Inelastic demand is characterized by a minimal response to price changes. This means that when the price of a good or service increases or decreases, the quantity demanded changes very little. For products classified as inelastic, consumers are less sensitive to price fluctuations, often because these goods are considered necessities or lack readily available substitutes.

For instance, if the price of insulin rises, patients who rely on it to manage their diabetes may still purchase nearly the same amount despite the increase in price, illustrating inelastic demand.

Products with inelastic demand typically have a low price elasticity of demand coefficient (less than one). This is in contrast to other types of demand, like elastic demand, where significant changes in quantity demanded occur in response to price changes, or unit elastic demand, where the percentage change in quantity demanded is proportionate to the percentage change in price. Perfectly elastic demand would mean that any price increase would lead consumers to stop purchasing a product altogether, which is not reflective of inelastic demand behavior.