Which has a more elastic demand?

Question

Beethoven recordings or classical music in general??


I know that availability of close substitutes, necessities vs. luxuries, the definition of the market and a time horizon help determine the price elasticity of demand, but I just don't understand what catergory this problem would go under and why.


Thanks a lot for your input!

Answer 1

This falls under the definition of the market. Study up on that topic, and probably the other ones also, it's really easy to tell. For instance a music CD has an inelastic demand because it's a broad category. There no close substitutes for a music CD. A particular CD, say a 50 cent CD is an elastic good. I could easily buy a 2pac CD. A specific 50 cent CD 'Get rich or die trying" is even more elastic, because other 50 cent CD's are almost perfect subs. Of course, you can keep going both ways. Music, in and of itself, is very inelastic. What's a good for sub for music? Probably nothing really.

To answers your question, a Beethoven recordings will be less elastic. This is actually for a variety of reasons: 1. The market is defined narrowly. 2. Their probably aren't good substitutes for Beethoven recordings. 3. The time horizon probably doesn't matter either, i.e. the price of a Beethoven recording is probably decently "sticky". It's just real easy. I can name a lot more reasons, but, you get the point.

Answer 2

I am not a fan but I would think that classical recording are substitutes for each other, so the Beethoven recordings would be more elastic than the category of classical. It is like red shirts vs just a shirt.

Answer 3

Beethoven On Demand

Answer 4

Classical Music will have more elastic demand than Beethoven recordings . But even Classical music's demand would not fluctuate more even If supply suddenly went down v/s Demand or vice-versa.

Answer 5

Demand. Where the supply is scarce, substitute goods will fill the gap. However, price controls demand too. If its too cheap and too expensive, people will do without or they'll save until they can afford the genuine article.

But its all balanced on how much the market will bear which is demand.