The habitual goods to which the consumer becomes addicted, have highly inelastic demand.
Because a consumer has developed the habit for consuming that good and it is very difficult for him to change his habit even if that good becomes relatively costlier.
Example : a consumer loves tea. He has the habit to drink tea at least twice a day. Now, if the price of tea increases to some extent, he won't really stop consuming tea, and move to coffee, because he can't overcome his habit and affection for tea.
Similarly, if price of tea falls, he won't start consuming 4 cups of tea!→ because he is already consuming tea - no greed!
So demand of tea here is less elastic.
Similarly, alcohol or cigarettes are highly addictive goods and consumer can't give up his habit, no matter what is the change in price.
So demand of such goods are even more highly inelastic.
Change in demand is proportionately far less than the change in price.
