Supply and Demand and Price Elasticity

Last Updated: 21 Mar 2023
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Apple I-PHONES - Elasticity of supply and demand ABSTRACT I-PHONE' ELASTICITY OF DEMAND What determines price elasticity of Iphones demand? Demand for Iphones – It seems like Iphone sales are above expectation and Apple can't meet current demand. People all over the world are enthralled and want to hold one of the advanced and sexiest products in the market. The degree of necessity or whether the good is a luxury – goods deemed by consumers to be necessities tend to have an inelastic demand whereas luxuries will tend to have a more elastic demand because consumers can make do without luxuries when their budgets are stretched.

It's likely to assume that Iphone considered as a luxury and in an economic recession customers can cut their spending on Iphones. The cost of switching between different phones - there may be difficulties involved in switching between different phones. In this case, using Iphone, with its unique applications and software might involve with issues of transferring data from one phone to another. This also imply when moving from using another phone to Iphone. I consider this part for some extent as an insignificant.

Summarizing, Iphone is a very unique product, differentiated but have some competitors. Price elasticity of demand is definitely not inelastic but not perfectly elastic. If prices go up significantly, there's no doubt that quantity demanded declines. I-PHONE' ELASTICITY OF SUPPLY Price elasticity also affects supply. Products with an inelastic supply usually have a long lead time, with little power over the quantity produced. Hotel rooms are one example, because if there's a price change, hotel owners can't decide halfway through the growing season to provide more or less of rooms.

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On the other hand, products with a high elasticity of supply tend to come from industries that can change their production levels more quickly - for example, milk and dairy products. If we examine Iphone elasticity of supply we should consider Apple manufactures for being able to adapt to high demand. From past publications, we could learn that Apple had some issues with facing demand, and that it couldn't meet demand. From my perspective Apple incorrectly predicated its sales, and that was the basis for the shortage. Iphone supply should be more elastic than inelastic at the end of the day.

Related Questions

on Supply and Demand and Price Elasticity

What is price elasticity of demand and supply examples?
Price elasticity of demand is a measure of how sensitive the demand for a product is to changes in its price. Price elasticity of supply is a measure of how sensitive the supply of a product is to changes in its price. Examples of price elasticity of demand and supply include the demand for luxury goods, which is usually more elastic than the demand for basic necessities, and the supply of agricultural products, which is usually more elastic than the supply of manufactured goods.
What is the formula of price elasticity of supply and demand?
The formula for price elasticity of supply and demand is PED = (Percentage Change in Quantity Demanded)/(Percentage Change in Price). This formula measures the responsiveness of quantity demanded or supplied to a change in price.
What do the price elasticities of supply and demand affect?
The price elasticities of supply and demand affect the responsiveness of the quantity supplied or demanded to changes in price. If the price elasticity of demand is high, then a small change in price will cause a large change in the quantity demanded. Similarly, if the price elasticity of supply is high, then a small change in price will cause a large change in the quantity supplied.
Is supply and demand elastic or inelastic?
Supply and demand can be either elastic or inelastic, depending on the product or service being considered. Generally, elasticity of demand and supply is determined by the availability of substitutes, the proportion of income spent on the product, and the time period in which the change in price occurs.

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Supply and Demand and Price Elasticity. (2018, Jan 30). Retrieved from https://phdessay.com/supply-and-demand-and-price-elasticity/

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