These are some interesting words, but what do they mean? They have several related definitions in economics, but in one context, price elasticity means prices are more readily changed by the seller. Price inelasticity means the opposite, prices are changed less easily.*
In our current inflationary economy, much of it has been fueled by supply shortages due to the pandemic and tariffs, as well as some other factors (gas prices go up every summer because of industry maintenance and increased demand, eg.). But, some people have noted there are a few sellers, retailers, etc. who seemingly have raised prices beyond what is needed.
Using the above terms, price setting by sellers tends to be more upward elastic. Sellers will more easily change the price upward when the market supply drops, more so than the market would dictate. This adds to the inflationary push. Yet, when the market supply catches up, the sellers are slower to adjust prices down, hence the term price inelasticity can be used.
In its worst form, the upward price elasticity is sometimes referred to as gouging. A hurricane knocks out all the power, so stores raise the price of bags of ice and bottled water. Retailers in an inflationary market would be foolish to gouge people, yet there are some who have added to their margins on the backs of customers. On the flip side, there will be those that milk the higher prices as the prices should fall, to get every last drop of extra margin.
People should remember who these retailers are. Some have been so blatant in price increases they find their names in news stories. So, my strong advice is to vote with your feet and shop elsewhere. My wife and I use a term that a seller is “proud of their services and products” when we see consistently higher prices. If they do this, people better be getting some darn good service or much higher in quality goods.
Two final pieces of advice. First, alter your demand. If gas prices are higher, drive less and walk more. Bundle your errands more, as well, to reduce travel costs. Second, if you have not tried generic or store products, now is the time. It is funny, people have grown accustomed to using generic prescription medicine as the brand costs are so high, but are reluctant to do so on store brands of food, trash bags, over the counter medicines, etc. There is no better time to try the lesser priced products than in an inflationary market.
Shoppers tend to know when prices are too far out of line. The best thing they can do is to tell the store manager he or she is forcing the shopper to look elsewhere. No words will be more chilling to a manager than that. Then follow through.
*Note: I am not an economist, so please do not presume the above is any more than from someone who had economic classes in college, much of which I have forgotten.
musingsofanoldfart 
It is probably always a matter of supply and demand. So, partly the consumer has in their hands depending on how urgently they want something and are willing to pay more. As you said, when gas prices are going through the roof you can walk more, use public transportation, or form carpools. It is not always that easy considering the increasing electricity and gas prices. During winter you may be able to save a bit more energy than the last year but you cannot completely do without. Sometimes we have a choice and sometimes it is like “take it or leave it”.
Erika, true. But, even with electricity/ natural gas, we can use less. Raise the A/C thermostat and lower the heating thermostat, eg and turn off WiFis and electronics at night. Every little bit helps. Keith
Yes, all good tips. We don’t have A/C over here. They ar not allowed in privat buildings. That way a lot of energy gets saved during summer. However, we lower the heating thermostat now.
There is always a possibility to save a little bit more. For example, I turn off lights immediately when I don’t need them. I wash my laundry with lower tempertatures and only during the daylight (due to our photovoltaic system) hours. I only charge my car by daylight and by not using the washer at the same time. Since I am working, it needs a new way of planning, but it is all doable.
Erika, you are ahead of the curve on this. Well done. Keith
Far too often, corporations use a slight blip as an excuse or ‘justification’ to raise their prices, and guess what happens when they do that? Their bottom line gets a boost. That is largely what has happened this year … companies have had a feeding frenzy blaming the supply chain issues, raising their prices, and seeing higher than ever net profits.
Another thing that I noticed a few years ago is companies who keep the price constant, but reduce the amount of product. So, a pound of coffee is now 13 ounces, but the maker brags that they haven’t raised their prices. The savvy consumer sees that little sleight of hand, but many consumers aren’t that savvy.
And I fully agree about generic brands! We use generic brands of most cleaning products and many food staples and for the most part, there really is no difference. There are very few things for which I’m willing to pay extra just for the name on the package.
Jill, good examples, especially the quantity cutback one. If people don’t think companies would do this, have they ever thought of the messaging on salary increase budgets – we are in bad times so, we are holding back on the salary budget OR we expect bad times, so we are holding back on the salary budget OR we are not yet out of bad times, just yet, so we are holding back on the salary budget? Same deal. Keith
Agreed on the salary increase myths! And yet, we are conditioned to accept what they say and while we might grumble a bit, that’s about the extent of it.
Jill, having been in HR, compensation and benefits consulting, I have seen less than altruistic behavior on too many occasions. Businesses will look for dollars in all nooks and crannies to make their numbers – holding back salary increases is just one of those ways. Keith
All correct. Here’s a shoutout to the 99 cents store and healthy competition.
Agreed.