How guitar is an elastic product
To understand why a guitar is considered an elastic product, let's first clarify what elasticity means in economics. Elasticity is a measurement used to determine the responsiveness of the quantity demanded or supplied to changes in price.
A guitar is considered an elastic product because changes in price typically lead to significant changes in quantity demanded. In other words, when the price of a guitar increases or decreases, it can greatly affect the demand for guitars.
One of the main reasons for this elasticity is the availability of substitute products. In the case of guitars, there are numerous options available, ranging from different brands to various types and models. If the price of a particular brand of guitars increases, consumers have the option to choose a different brand or even a different musical instrument. This flexibility in choice makes the demand for guitars more responsive to changes in price.
Moreover, guitars are non-essential items, meaning they are not necessary for basic needs or survival. When the price of non-essential goods increases, consumers tend to be more sensitive to price changes and may opt to delay or even cancel their purchase. On the other hand, if the price of guitars decreases, consumers might be more inclined to buy one or even consider purchasing multiple guitars.
In summary, a guitar is considered an elastic product because there are substitute options available, and consumers are generally price-sensitive when it comes to non-essential goods. The diverse range of guitar choices combined with consumer responsiveness to price changes contributes to the elasticity of the guitar market.