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Draw the demand curve of Apple and calculate the price elasticity for their main product or...

Draw the demand curve of Apple and calculate the price elasticity for their main product or service. Determine if they have an elastic or inelastic demand curve.

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Answer #1

Apple is a company that develops electronics , computer software etc . Such devices such as iPads , iPhones etc are luxury goods , which means that price elasticity is relatively elastic in nature . When price falls for such products , people's demand rises more than proportionately to price change . They are not a necessity , hence demand responds very much to price changes .

They have an highly elastic demand .

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