Question

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.

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 .

The price elasticity of demand for a product is -0.5. You know
that...
Demand for this product is inelastic.
Demand for this product is neither elastic or inelastic. It is
"unit elastic."
Demand for this product is elastic.
Not enough information to answer this question.

1. The price elasticity of demand for iphone 6 is 1.2. Apple
wants to increase its total revenue. Would you recommend that Apple
raise or lower the price of iphone 6? Explain your answer.
2. The demand of gasoline is more inelastic in the short run
than in the long run. Why? Give examples that illustrate why the
demand of gasoline in the long run is not inelastic.
3. Choose one of the products or services that your company
provides,...

Select a product or service and discuss your subjective estimate
of its price elasticity of demand. Is it highly elastic or
inelastic, unitary elastic, etc.?
Does it matter if you select a specific brand of a product, such
as Kellogg's corn flakes, versus breakfast cereal or Exxon gasoline
versus gasoline in general?
What is the relationship between price elasticity and the effect
on total revenue if the price of your product or service goes up or
down?

how
do you draw the demand curve q=250-10p
calculate the price elasticity of demand at prices of $5, $10, and
$15 to show how it changes as you move along this linear demand
curve

For the demand curve Q=50−P, what is the own-price elasticity of
demand when P=16 2/3 (that is, 50/3)? Is demand elastic, inelastic,
or unit elastic at that point?
a) -0.5, inelastic
b) -1, unit elastic
c) -0.5, elastic
d) 33.3, inelastic
e) 33.3, elastic

FOR EACH OF THE FOLLOWING CASES, CALCUALTE THE POINT PRICE
ELASTICITY OF DEMAND, AND STATE WHETHER DEMAND IS ELASTIC,
INELASTIC, OR UNIT ELASTIC. THE DEMAND CURVE IS GIVEN BY
QD=5,000-40PX
A. THE PRICE OF THE PRODUCT IS $40
B. THE PRICE OF THE PRODUCT IS $ 80.
C. THE PRICE OF THE PRODUCT IS $20.

Suppose that you have estimated the following demand curve:
P = 30 + .00025I – 0.25QD
QD = 120 − 4P + .001I
You know that the current market price is $11 and average income
(I) is $40,000.
Calculate the markets total Demand?
b.Calculate the market’s consumer surplus.
Draw the Demand Curve and identify
the price quantity and label the axes for
price and quantity.
Calculate the price elasticity of demand
Is the price elasticity of demand calculated in Question...

1/Consider the demand curve Q=100-50P. Draw the demand curve and
indicate which portion of the curve is elastic, which portion is
inelastic, and which portion is unit elastic.
2/
Suppose the demand for crossing the Golden Gate Bridge is given
by Q=10,000 – 1000P.
If the toll (P) is $3, how much revenue is collected? (15
points)
What is the price elasticity of demand at this point? (10
points)
Could the bridge authorities increase their revenues by changing
their price?...

Taking the absolute value of the cross-price elasticity of
demand is incorrect because it would:
remove the ability to tell whether the two products have
inelastic demand or elastic demand.
cause the value of the cross-price elasticity of demand to
become smaller.
remove the ability to tell whether the two products are
substitutes or complements.
cause the value of the cross-price elasticity of demand to
become zero.
The percent change in insulin demanded for any price change is
zero. The...

Drawing on the influences (determinants) of price elasticity of
demand, explaining whether the demand for petrol in Australia is
elastic or inelastic. draw a graph of the effect of price drop on
the total revenue of a petrol station.
Part 1: explain whether demand for petrol is elastic or
inelastic by exploring the determinants of price elasticity of
demand.
Part 2: explain and illustrate the impact of price rise on total
revenue of a petrol station. draw a graph.

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