Are video games elastic or inelastic?

Answer 1

Video Games can be considered elastic because their demand tends to fluctuate with changes in price, especially due to the availability of substitutes and varying consumer preferences. When prices rise, consumers often seek alternatives, such as other games or forms of entertainment. However, certain popular titles or franchises might exhibit inelastic characteristics, as dedicated fans may be less sensitive to price increases. Overall, the elasticity of video games varies depending on the specific game, market conditions, and consumer Demographics.