The mind really can move things! ian lee 5Z

Very often , a good has a certain amount of elasticity in that when the demand of the good changes, the equilibrium price would then shift according to the elasticity of the good. However, there is an interesting occurance when exotic goods or special goods are being put on the market. An example of this can be seen in different types of art sold during an art auction,where the equilibrium is not defined for that one good as the price is determined by whoever is buying the painting and feels that it is a reasonable price for the good. Thus, when the price changes the demand can stay the same, the price elasticity is considered 0. 

But can we immediately say that food is definitely elastic? I would put certain foods to have interesting elasticities as they behave in the same way as paintings. For example, we can consider exotic foods to behave with around the same price elasticity as something like an expensive painting as people would buy them regardless of price as the value or the utility derived will vary from person to person. 

With this in mind, the question of just how much the price can rise for an item without the demand dropping for items like these. If the price elasticity of a painting is 0, then how does a market come about for these things? How do we even come to an agreement of the price? Is there a price cap to these things, or even a minimum price? My opinion on this is that psycology plays a big part in this fluctuation of prices in a big way, especially for these kinds of goods. Apparently we havent learnt anything on this so im just gonna take a whack at it. I would think that what we think of a good has alot to do with how elastic a good can be, and that it is influenced by our minds. 

So in essence everything we do can actually influence everthing in economics, and what we are thinking today could end up on the charts tommorow!