By Stephanie Zepeda
Supply & Demand
The popularity of a particular product can have a ripple effect on the entire market for the product. This can lead to changes in pricing, competition, the preference of consumers, and in general the market structure. Additionally, this is an example of how popularity/ aesthetic of a specific brand or product can influence supply and demand in a particular market.
Price Elasticity
With increased demand headphone manufactures may respond by raising prices, taking advantage of the inelastic demand for popular products. In this case, taking advantage of the aesthetic and brand reputation. Consumers who desire these headphones may be less sensitive to price changes.
This specific product is a luxury good so it leans toward elastic demand but based off the preferences of individuals who do prefer this product it may vary for them due to strong brand preference and less sensitivity to price changes which contributes to a level of inelastic demand.
Inelastic/Elastic Demand
This specific product is a luxury good so it leans toward elastic demand but based off the preferences of individuals who do prefer this product it may vary for them due to strong brand preference and less sensitivity to price changes which contributes to a level of inelastic demand.