In the computer industry, categories of products are inelastic. Take processors for example. If all makers of CPU's raised their prices together, demand would not fall accordingly because essentially, one needs a CPU to make a computer. Since everyone has raised their price, one has no choice but to pay that higher price. Individual makes of a product are elastic. This is because there are almost always substitutes for a product. If Intel's latest flagship Pentium 4 is $1200, and AMD's latest Athlon FX is $800, the law of demand will take over and the demand for the P4 is going to drop.