Momentum is conserved in inelastic collisions due to the principles outlined in Newton's third law, while kinetic energy is not conserved because it can be transformed into other forms of energy like heat and sound. Inelastic collisions are characterized by a loss of kinetic energy, which is defined by the objects not retaining their initial kinetic energy post-collision. Perfectly inelastic collisions represent a scenario where the colliding objects stick together, resulting in the maximum loss of kinetic energy. Despite the loss of kinetic energy, the total energy remains conserved throughout the process. Ultimately, momentum persists before and after the collision, highlighting its fundamental nature in physics.