Economics

Price elasticity of hold is a measure apply in economics to show the responsiveness of the quantity demanded of a good or service to a change in its cost. When looking at apple in order to evolution tax r neverthelessue the company should decrease the price of their products. The iPod, iPhone, and mack computers atomic number 18 all products offered by Apple. If the price is decreased more consumers al mortified be able to commit more of their products since the demand is higher(prenominal)(prenominal). umpteen consumers respond to the price of the iPod during the pass season. The price of the iPod is decreased most this time because the demand is high and more particulars will be sold in a smaller amount of time. Apple also provides other discount incentives to students who purchase their computers. Offering a variety of products Apple has a competitive advantage over other mp3 devices because of all the functions the iPod offers. By decreas ing the price of their products the demand will become even greater because the consumers interest is at hand. Showing you are hearing to consumers wants will drive revenue to increase at these low prices because more products will be sold. The Demand of an item piece of tail depend on a few factor outs if a consumers income increases.

The first line of apprehension is that if customers have more income they dissolve afford the item they desire. In using Apple, their products are discordant where customers whitethorn value any(prenominal) products more than others. For some they value the IPod as a compuls ion while some may wad laptops or I phone m! ore important. The customers value of the item is a key factor in determining need. The income may not be a factor because these same concourse will buy it whether they had a higher or write down income. The price of the item can play a consumption due to the customers value of the item. If the price of the I phone, which is between $99 and $299, consequently some might detect it is too expensive to give in with their income bracket. If their income increases, then their olfactory modality that it...If you want to cook a full essay, order it on our website: OrderCustomPaper.com

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