Question

You are required to pick a consumer product and discuss the followings: 1. What is the product? [Hint: this can be as broad as you want, like computers, TVs, cars or as brand specific as possible, such as Twinkles, iphone. Think about how you will answer the questions below before you pick your product]. 2. What are the substitutes and complements for this product? 3. Is the price elasticity of demand greater or below 1? In other words, how sensitive are the consumers to this price change in this product? [Hint: best to be support by news article, news report, financial report, journal articles. If you do have support, please add proper citations and bibliography section] 4. Is this product a normal good, inferior good? Why? 5. Describe the market competition for this product (perfect competition, oligopoly, monopoly, etc) Who are the main producers? 6. What factors would affect the demand for this product? 7. What factors would affect the supply for this product? What inputs does it require?

Answer 1

1) Apple Iphone

2) Samsung, sony, htc etc smart phones

3) Price elasticity of demand is unit elasticity as the possible price and quantuty of the same value when there is a change.

What ever may be the price the of the Iphone the quanity does not change as it has its own brand and followers example during release of Iphone X

4) It is an Normal good as the income raises the demand increases

5) Monopolistic competition as the prices can be charged to a certain range and there is competition with substitues but the effect is less.

Apple company is the sole producer