What does it mean for a good to be described as having inelastic demand?

When a good is described as having inelastic demand, it means that its demand remains relatively constant even when there are changes in price. Inelastic demand indicates that consumers will continue to purchase the good regardless of price increases or decreases, often because it is a necessity or lacks readily available substitutes. This characteristic is typical for essential items, such as medication or basic food products, where the demand is not significantly affected by price fluctuations. Understanding this concept is crucial in fields such as economics and marketing, as it influences pricing strategies and sales forecasting.