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Assignment on Economics of Apple

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Added on  2020-07-22

Assignment on Economics of Apple

   Added on 2020-07-22

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ECONOMICS QUESTIONS
Assignment on Economics of Apple_1
Table of ContentsPART 1............................................................................................................................................11...................................................................................................................................................12...................................................................................................................................................13...................................................................................................................................................14...................................................................................................................................................3REFERENCES................................................................................................................................4
Assignment on Economics of Apple_2
PART 11As per the given case scenario quantity of sold products of Apple are decreasing but salesprice of the company is increasing rapidly. The main reason of increasing revenue of thebusiness is entity has set its iPhone prices high. If demand gets changes slightly then it impactshigh on prices. That is why overall revenues of the firm is increasing rapidly. Apple's productshave high quality and it has brand image (Karlan and Zinman, 2018). That is why people arevery positive towards the firm. If company is offering high price products then also people liketo buy its phone. That is the main reason that quantity of sold goods is decreasing then alsocompany is able to earn more profit because its offered prices are too high. 2Price elasticity of demand can be defined as changes in demand with respect to changesin prices. sales in 2017 (A)78.29Sales in 2018 ()77.32FormulaB-A/A-0.0123Price 2017 (c)694Price 2018 (D)796d-c102102/694=0.14Price elasticity=-0.0123/0.14=-0.08423.Demand curve is the diagram that shows interrelationship between prices and quantity.These both elements are interrelated if one gets changed then other get affected too. Present caseis of price inelastic demand where demand is zero. If demand gets fluctuated then also prices donot get affected (Sun and Ouyang, 2016). People are ready to pay high prices, its market pricesare increasing without contraction in demand quantity of sold items1
Assignment on Economics of Apple_3

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