Managerial Economics and Pricing Policy of Ipads

Management
Economics

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Introduction of Product................................................................................................................3
Identifying Demand and Market Equilibrium in context of External Factors.............................4
Identifying Price Elasticity of Demand.......................................................................................7
Pricing policy of Ipads.................................................................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
Books and Journals....................................................................................................................13

INTRODUCTION
Managerial economics can be described as that branch of economics which together has concepts
of Management and economic concepts, tools, theories and methodologies related with monetary
aspect (Daft, 2021).
Management economics is very helpful in solving practical problems of businesses that
influence on economics of the organisation as well. The selected organisation for this report is
Apple Inc, and chosen product is Ipad Pro products of Apple Inc. In this report role of
Management Economics is highlighted in and also its concepts are used to demonstrate
performance of selected products in market. Identification of market equilibrium and demand
with it's influence on different factors will also included in this report. In the last, factor that
influence on price elasticity of demand are also discussed along with deciding over suitable
pricing policy for Apple Inc in case of Ipad Pro.
MAIN BODY
Introduction of Product
Apple Inc had decided to bring such product in market that offers consumer as similar
experience like the one they get in operating desktop PCs. A product that can offer more power
and resolution effects to consumers along with some advanced features of new age technology.
Also, the product design is such way that it can be operated by consumers like Desktop PC, they
can pair it keyboard and Apple Pencil. Ipad Pro has stylish utility for Artistic work and writing
works as well, where drawing and writing can be made more fluidly and precisely.

Figure 1: Ipad Introduction
Identifying Demand and Market Equilibrium in context of External Factors
Demand and Market Equilibrium are concepts of Microeconomics. Demand is the
quantity of Ipad Pro, which the consumers in market are willing to buy at given prices of product
at a point of time (Samuelson, Marks and Zagorsky, 2021). And, Market Equilibrium is the
position of Ipad pro in market when demand is in match with the supply of product. It is the
situation of stability in prices and quantity of product. In this section of report, Demand and
Market equilibrium for Ipad Pro is determined in context of different external factors.
Price of substitutes- Substitutes products are those which consumers have an option to buy
rather then buying Ipads offered by Apple. It does not mean buying similar kind of product of
other company but it is about changing the product itself. Here, substitute products offers same
level of utility to consumers. In case of Ipads, substitute products can be Mobile, laptops etc. The
relation with substitute products is proportionate (Datta, 2017). That means, if prices of
substitute products rises than demand of Ipad will increase and if prices of substitute products are
seen decreasing then demand of Ipad will decrease. In both the cases, Market equilibrium
established for Ipads in market will get disturbed because there is sudden fluctuation in demand.