When it comes to Apple phones the elasticity or inelastic of the price per unit does not change until a “new and better” product comes on the market. When the phone AS was released to the market the demand far outweighed the supply on hand yet, the price did not change. Colander (2010) stated, “Formally, demand or supply Is elastic when the percentage change In quantity Is greater than the percentage change in price.
Conversely, demand or supply is inelastic if the percentage change in quantity is less than the percentage change in price. ” (p. 135). The phone 5″, launched by Apple on September 20, 2013, accounted for only 27 percent of all phones@ in stock at that time, but that number tumbled as the quantity demanded rose beyond the quantity supplied. Although, the quantity supplied could meet the quantity demand at a later date as statistics of other Phones@ have shown In the past. Whitney, 2013). Thusly. Since the demand for the phone is high, even though the price is high, the price is inelastic because even at the given price the demand cannot be met. Apple is continually on the cutting edge of technological advances in the cellular phone industry with better innovations o their products. The Phone 5″ Is the most recent technological advancement to the phone@ with an improved camera, a next-gene CPU and motion tracking chip, and fingerprint sensors.
Major drawbacks are that it still has the four inch screen like the original phone”, the fingerprint sensor only works with Apple applications at this time, the 64 bit AY processor and the MM motion-tracking chips do not have any “killer APS” yet, and the ISO 7 may boggle the minds of longtime phone users: the phone AS is by far the fastest and most technologically advanced of the Apple Smartness’ to date.
C/net. Com, 2013). The relationship between the amount of labor and capital In reference to the law of diminishing marginal productivity is; According to Investigated. Com (2013), “that while increasing one input and keeping other inputs at the same level may initially Increase output, further Increases In that Input will have a limited effect, and eventually no effect or a negative effect, on output.
The law of diminishing marginal productivity helps explain why increasing production is not always the best way to investigated. Com (2013), “be better to stop at a certain level; increase a different input, or produce an additional or different product or service to maximize profit. ” When Apple came out with the first phone@ it sold very well, but when Apple saw a drop in profits they came out with the next generation of the phone and continually modify it to remain competitive in the industry.
