What types of goods have a lot of price elasticity?
There is no definitive list of goods that have a lot of price elasticity as it can vary depending on factors such as consumer behavior, availability of substitutes, and market conditions. However, some common examples of goods that tend to have high price elasticity include:
1. Luxury goods: Goods that are not essential for basic needs and have readily available substitutes, such as high-end clothing, luxury cars, and expensive vacations.
2. Non-essential items: Items that are not necessary for survival, such as electronics, recreational goods, and entertainment products.
3. Commodities: Goods that are widely available and have many substitutes, such as gasoline, basic food items, and raw materials.
4. Highly competitive markets: Goods in markets with a large number of competitors and easily comparable substitutes, such as fast food, beverages, and household products.
5. Non-branded products: Generic or store-brand items that do not have a strong brand loyalty and are easily replaceable.
It is important to note that price elasticity can vary over time and across different markets, so the degree of elasticity for a particular good can change based on various factors.