Question

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.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

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 .

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The price elasticity of demand for a product is -0.5. You know that... Demand for this...
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) Firms are interested in the magnitude of the price elasticity of demand coefficient. The magnitude...
1) Firms are interested in the magnitude of the price elasticity of demand coefficient. The magnitude of ?? determines whether the demand for a good or service is elastic, inelastic or unit elastic. For the following cases indicate whether demand is elastic, inelastic or unit elastic. 1 < |??| < ∞ |??| = 1 0 < |??| < 1 2) 2, What happens to the absolute value of the price elasticity of demand as you move up a demand curve?
1. The price elasticity of demand for iphone 6 is 1.2. Apple wants to increase its...
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....
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?
FOR EACH OF THE FOLLOWING CASES, CALCUALTE THE POINT PRICE ELASTICITY OF DEMAND, AND STATE WHETHER...
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.
When the price is ​$66 a​ unit, demand is perfectly elastic. Draw the demand curve for...
When the price is ​$66 a​ unit, demand is perfectly elastic. Draw the demand curve for this good. Label it D1.     When the quantity demanded is 99 million units a​ year, demand is perfectly inelastic. Draw the demand curve for this good. Label it D2.     When the price is ​$1212 a​ unit, the quantity demanded is 33 million units a​ year, and demand is unit elastic. Draw the demand curve for this good. Label it D3.
how do you draw the demand curve q=250-10p calculate the price elasticity of demand at prices...
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...
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
Suppose that you have estimated the following demand curve: P = 30 + .00025I – 0.25QD...
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...
Taking the absolute value of the cross-price elasticity of demand is incorrect because it would: remove...
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT