Demand is price inelastic because it is a necessity good, with little amount of

substitutes and it forms a small proportion of income. Hence, due to supply

changes, price fluctuations tend to be significant.
when the supply of agricultural goods drops due to weather condition or supply
shocks, the prices go up significantly as opposed to an elastic demand, where
prices only go up for the same drop in supply. The rationale being since the
demand is price inelastic, people buy the goods regardless of price, hence
suppliers will pass on price increments to consumers.
Supply is price inelastic because production or gestation period is long, low
availability of spare capacity, goods are perishables so they cannot be stored
easily. Similarly, for a given change in demand along an inelastic supply, prices go
up significantly.
when demand increases, the prices go up significantly, as opposed to elastic
supply. The rationale being since the supply is price inelastic, it is not responsive
to price changes, given that demand increases, supply does not respond fast
enough in the short run and prices go up significantly.

Sumit has just completed his post-graduation and joined a start-up company.
The company was planning to launch a new eatery or tiffin house near a
college, so the management wanted to understand the different factors that
can impact the demand and supply of tiffin house. Help Sumit to list down
factors impacting demand and supply of tiffin house.