Final answer:
To determine if LPs, Singles, CDs, and Cassettes are price elastic, we must understand the price elasticity of demand which indicates how the quantity demanded of a good responds to a change in its price. Higher-priced goods generally have more elastic demand. Without further information on prices and substitutes, it's difficult to definitively classify these goods' price elasticity, but LPs could be more price elastic due to their niche status and potential higher price.
Option 'a' is the correct.
Step-by-step explanation:
To determine which goods are price elastic, we need to understand the concept of price elasticity of demand. This measures how the quantity demanded of a good responds to a change in its price.
Goods are considered price elastic when a relatively small change in price leads to a significant change in the quantity demanded.
In other words, the price elasticity of demand is greater than one. When considering the given options of LPs, Singles, CDs, and Cassettes, we need more context to determine their price elasticity, as it can vary based on many factors such as availability of substitutes, necessity of the product, proportion of income spent on the good, and the time period considered.
However, based on the general understanding that higher priced goods tend to be more elastic because consumers will be more sensitive to price changes, we can infer that among LPs, Singles, CDs, and Cassettes, the items which have higher prices and more readily available substitutes are more likely to be price elastic.
Without specific prices and market conditions, it's difficult to answer concretely. In current times, considering that LPs (vinyl records) have become more of a niche market with potentially higher prices relative to the other options, they might show more price elasticity as consumers may have many alternative ways to access music at varying price points.