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.