There is a demand for guitars and their parts because of so many people that play guitar at home, concerts, shows, presents, aspiring guitarists, etc. So, guitars and their parts are sold and bought every day, because of this demand. The quantity demanded for guitars and guitar parts is very high and very frequent, because the demand for them is so high. Bands, guitarists, studio musicians and recreational players all need their guitars, so the market allows spikes in guitar prices for certain brands and deals for others.
The sales of guitar do not necessarily follow a demand schedule per se. The demand for guitar has been very constant since its introduction, but has been slowly going up on a worldwide scale. Although, the scedule has experienced some change lately. The only big change was when it was being popularized through media in the 1950s and 60s.
The law of demand is a thereom designated to help the user find out the price of a product based on the quantity demanded. Guitars and guitar parts are a normal good in my case, because I will always be buying extra strings, pedals, amp enhancing modules and what not with all the extra money that I can spend on leisure goods. For me, light gauge strings are an inferior good, because I spend more money on heavier gauged strings rather than light. A nice substitute for heavy gauged strings are the medium gauged strings, because they do not cost more and they are not as thin as light gauge strings, so I can still get a thicker sound from my guitar. Cry Baby pedals for my guitar is a neutral good, because no matter how much money I have, I am only going to need one Cry Baby pedal, because it only makes one sound and unless it breaks, I will not need another one. Complements to my guitar would include amps, pedals, picks, strings, whammy bars, etc. that would enhance my guitar-playing experiences.
The demand for older amp motherboard pieces is going down by the day, because everyone is buying newer and improved amps. But, the price of these pieces rise steadily, due to a limited resource. This is an example of elastic demand, when the quantity demanded changes by a percentage greater than the price. The demand for newer amps steadily decrerases with each new model that comes out, but the old models made still must be sold and profited off of, so the price goes up a lot with inflation. This is an example of inelastic demand, when the quantity demanded changes by a smaller percentage than the price.
Supply. This refers to the willingness and ability to of sellers to produce and offer to sell different quantities of a good at different prices during a specific time period. Supply is related to everything and anything in the market, including guitars and guitar parts. There is also the law of supply, which states that as the price of a good increases, the quantity supplied of the good increases, and as the price of a good decreases, the quantity supplied of the good decreases, regulating the general pattern of the sales of any item in a market. Quantity supplied refers to the number of units of a good produced and offered for sale at a specific price. For example, a store is selling five guitar cables for eight dollars. In this situation, five is the quantity supplied at this price. A supply curve is a line that slopes upward and shows the amount of good sellers that are willing and able to sell at various prices. Generally, guitar sales fall in a well-rounded supply curve, due to so many companies and stores that are willing to sell their products at diverse prices. A supply schedule is an illustrated chart that shows the law of supply. These charts generally show how much a widget costs at a certain quantity. Elastic supply exists when the quantity supplied changes by a greater than the price. When the supply of picks is extremely abundant the price won't change very much. Even through high sales, the stores will just keep restocking and keep the price steady. This is when elastic supply exists. Inelastic supply exists when the quantity supplied changes by a smaller percentage than the price. Say, new amps are selling well and the supply of them is staying generally constant, but due to the good sales, companies decide to raise the price of their amps. This is when inelastic supply exists.
A shortage exists when the quantity demanded is more than the quantity supplied. Right now, there is a shortage of germanium transisters for old amp motherboards, because companies now use silicon transisters, because they are cheaper, they work better, and there is a more abundant supply of them. So, all of those who need germanium transisters need to get them specially ordered and made. A surplus, on the other hand, is the opposite of a shortage. A surplus is when quantity supplied is greater than quantity demanded. Right now, there is a surplus of Fender guitars, because they cost so much and Gibson is starting to take over the elctric guitar scene along with Epiphone. Equilibrium is when the quantity demanded is the same as the quantity supplied. Right now, there is an equilibrium in the sales of guitar straps, where the amount of quantity supplied is generally equal to the quantity demanded. The equilibrium quantity is the amount of guitar straps bought and an equilibrium price is how much the guitar straps are selling for right now.
The sales of guitar do not necessarily follow a demand schedule per se. The demand for guitar has been very constant since its introduction, but has been slowly going up on a worldwide scale. Although, the scedule has experienced some change lately. The only big change was when it was being popularized through media in the 1950s and 60s.
The law of demand is a thereom designated to help the user find out the price of a product based on the quantity demanded. Guitars and guitar parts are a normal good in my case, because I will always be buying extra strings, pedals, amp enhancing modules and what not with all the extra money that I can spend on leisure goods. For me, light gauge strings are an inferior good, because I spend more money on heavier gauged strings rather than light. A nice substitute for heavy gauged strings are the medium gauged strings, because they do not cost more and they are not as thin as light gauge strings, so I can still get a thicker sound from my guitar. Cry Baby pedals for my guitar is a neutral good, because no matter how much money I have, I am only going to need one Cry Baby pedal, because it only makes one sound and unless it breaks, I will not need another one. Complements to my guitar would include amps, pedals, picks, strings, whammy bars, etc. that would enhance my guitar-playing experiences.
The demand for older amp motherboard pieces is going down by the day, because everyone is buying newer and improved amps. But, the price of these pieces rise steadily, due to a limited resource. This is an example of elastic demand, when the quantity demanded changes by a percentage greater than the price. The demand for newer amps steadily decrerases with each new model that comes out, but the old models made still must be sold and profited off of, so the price goes up a lot with inflation. This is an example of inelastic demand, when the quantity demanded changes by a smaller percentage than the price.
Supply. This refers to the willingness and ability to of sellers to produce and offer to sell different quantities of a good at different prices during a specific time period. Supply is related to everything and anything in the market, including guitars and guitar parts. There is also the law of supply, which states that as the price of a good increases, the quantity supplied of the good increases, and as the price of a good decreases, the quantity supplied of the good decreases, regulating the general pattern of the sales of any item in a market. Quantity supplied refers to the number of units of a good produced and offered for sale at a specific price. For example, a store is selling five guitar cables for eight dollars. In this situation, five is the quantity supplied at this price. A supply curve is a line that slopes upward and shows the amount of good sellers that are willing and able to sell at various prices. Generally, guitar sales fall in a well-rounded supply curve, due to so many companies and stores that are willing to sell their products at diverse prices. A supply schedule is an illustrated chart that shows the law of supply. These charts generally show how much a widget costs at a certain quantity. Elastic supply exists when the quantity supplied changes by a greater than the price. When the supply of picks is extremely abundant the price won't change very much. Even through high sales, the stores will just keep restocking and keep the price steady. This is when elastic supply exists. Inelastic supply exists when the quantity supplied changes by a smaller percentage than the price. Say, new amps are selling well and the supply of them is staying generally constant, but due to the good sales, companies decide to raise the price of their amps. This is when inelastic supply exists.
A shortage exists when the quantity demanded is more than the quantity supplied. Right now, there is a shortage of germanium transisters for old amp motherboards, because companies now use silicon transisters, because they are cheaper, they work better, and there is a more abundant supply of them. So, all of those who need germanium transisters need to get them specially ordered and made. A surplus, on the other hand, is the opposite of a shortage. A surplus is when quantity supplied is greater than quantity demanded. Right now, there is a surplus of Fender guitars, because they cost so much and Gibson is starting to take over the elctric guitar scene along with Epiphone. Equilibrium is when the quantity demanded is the same as the quantity supplied. Right now, there is an equilibrium in the sales of guitar straps, where the amount of quantity supplied is generally equal to the quantity demanded. The equilibrium quantity is the amount of guitar straps bought and an equilibrium price is how much the guitar straps are selling for right now.
posted by Flying V at 8:09 AM
1 Comments:
Nice job, maybe you could fix the font color, but other than that, you really know what you are talking about, you sound very professional. Nice job using personal experience. Very good job tying in economics to guitars. Good luck on the next assignment!
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