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Markets are made up of sellers and buyers. Sellers have a supply of goods, and buyers have a supply of money. If the price is right, a seller and a buyer agree to make a trade. The amount of buyer interest that exists at a specific price level is called the demand.
1 Perfectly inelasticity of demand is seen in the demand of necessary goods, while relative inelasticity is seen in case of very expensive goods. 2  The coefficient of elasticity of demand is less than 1, that is ed. 3  By this explanation we have completed the differences between Elastic and Inelastic demand. 4  Thank you.