Asked by Halwi Ahmed on Jul 14, 2024
Verified
Based on the information above,video games have
A) A unitary elastic demand
B) An inelastic demand
C) An elastic demand
D) A perfectly elastic demand
Elastic Demand
A situation where the quantity demanded of a good or service significantly changes in response to a change in price.
Unitary Elastic
A situation where the percentage change in quantity demanded is equal to the percentage change in price, indicating a proportional relationship.
Video Games
Electronic games that involve user interaction with a user interface to generate visual feedback on a two- or three-dimensional video display device such as a TV screen, computer monitor, or handheld device.
- Gain an understanding of the theories of price elasticity in demand and supply.
Verified Answer
DH
Dylan HaydtJul 18, 2024
Final Answer :
C
Explanation :
The article mentions that video game prices are a major factor in consumer purchasing decisions and that there are substitute goods available (e.g. streaming services, other forms of entertainment). These factors suggest that the demand for video games is elastic, meaning that changes in price will have a significant impact on the quantity demanded by consumers.
Learning Objectives
- Gain an understanding of the theories of price elasticity in demand and supply.