What term describes a situation in which a change in the price of a product has very little or no impact on the demand?

The term that describes a situation in which a change in the price of a product has very little or no impact on the demand is inelastic demand. This concept is fundamental in economics, as it illustrates how consumers respond to price changes.

Inelastic demand occurs when the quantity demanded of a product remains relatively stable regardless of changes in its price. This typically happens with essential goods or services that are necessary for consumers, such as basic food items, medications, or utilities. Because consumers have few substitutes for these necessities, even if the price increases or decreases, their purchasing behavior does not significantly alter.

This concept is contrasted with elastic demand, where price changes lead to noticeable changes in the quantity demanded. Understanding inelastic demand is crucial for businesses and policymakers as it informs pricing strategies and anticipated revenue from products. The other terms, such as variable demand and stable demand, describe different characteristics of demand but do not focus specifically on the relationship between price changes and demand responsiveness as inelastic demand does.