Is a Macbook elastic or inelastic?

Is a Macbook elastic or inelastic?

In the real world, price elasticity of demand can be closely tied to brand reputation. For example, Apple has inelastic products because changes in price have little effect on demand: shoppers will still line up outside the store for a new Apple product.

Are laptops elastic or inelastic?

The price elasticity of the laptop is 1.25. (-25 ÷ 20 = -1.25, but we overlook the minus sign). Because 1.25 is greater than 1, the laptop price is considered elastic.

Are Apple products price inelastic?

Unique product like iPhone usually is inelastic because there are no substitutes. In the case of iPhone, demand always high because of consumer’s requests, so although the price is high, still Apple cannot supply enough for all.

What is Apple’s elasticity of demand?

The elasticity of apples therefore is: 0.20/0.06 = 3.33, The demand for apples is quite elastic.

Why is an iPhone inelastic?

The price elasticity of Demand and Supply product like iPhone usually is inelastic because there are no substitutes. If the price increases while no change in the amount of income available, consumers typically reduce their quantity demand.

What goods are elastic?

Examples of elastic goods include luxury items and certain food and beverages. Inelastic goods, meanwhile, consist of items such as tobacco and prescription drugs. The elasticity of demand is calculated by dividing the percentage change in the quantity demanded by the percentage change in the other economic variable.

Are laptop and desktop substitute goods?

Desktop computers and laptop computer are substitute goods, which means any changes in the price of one computer will affect the demand for…

Are iPhones inelastic?

After analyzing the smartphone industry the Apple iPhone is inelastic product and consumers will not be overly price sensitive because of their need for a smartphone and the oligopolistic smartphone market that offers limited substitutes.

Is demand for iPhone elastic?

Demand for iPhones is price inelastic. This is because of the high brand loyalty that Apple has been able to create. Even if the price of an iPhone rises, people do not want to move to other brands. On the other hand, the demand is also income elastic.

Are apples elastic demand?

The basic concept is fairly straightforward: Demand is more elastic when the amount that people want to buy changes a large amount for a small change in price. The opposite is inelastic. Apples are a relatively elastic good.

Are Apple phones elastic?

The price elasticity of Demand and Supply product like iPhone usually is inelastic because there are no substitutes.

Are phones elastic or inelastic?

The demand for Android smartphones is much more elastic, meaning that a small change in price has a huge impact on demand.