Transcript Econs webquest project

IPADS
What is a iPad?


-
It’s a 9.7-inch tablet computer that fits in
between the iPhone smartphone and the
MacBook computer.
Functions:
Web browsing
E-mail
Photos
Video
Music
Games
Ebooks
So WHEN did ipad first originate?

The first generation of ipad is released on 3rd April 2010 and the
second generation of ipad is released on 11th March 2011
How is the price determined?

The price of iPad is determined by 2 factors – market demand
and supply by price mechanism.
Demand exceeds supply
↓
Upward pressure on price
↓
Quantity demanded falls
↓
Equilibrium price
What are some of the related/ associated products for
iPad? How are these products related to the ipad?
Due to high demand for ipad
↓
Production of products related to ipad (complements)
-
Ipad cover
Ipad briefcase
↓
Production of products similar to ipad (substitutes)
-
Samsung galaxy tab
Blackberry playbook
Elasticity
Due to developments that affect the standard of living
in major countries
Income has increased Affecting their choice and taste of
goods
People has become more techsavvy & affluent
Increased demand for luxury goods (E.g. iPads)
Making the iPad income elastic YED>0
Pricing the iPad
Due to media advertising, iPad has become
highly popular and has made the demand for
the iPad price inelastic. Hence price of iPads
can be increased without much decrease in
its quantity demanded.
In the above figure, when price increases from P2 to P1 , there is a less than
proportionate decrease from Q2 to Q1 in the quantity demanded. When
pricing the iPads, the producers will naturally increase the price of the iPads
in order to maximize profits.
Comparison
Samsung Galaxy Tablet
iPad
Amazon Kindle
Other products(substitutes) pale in comparison when compared to the iPad.
Therefore, if price of the substitutes decrease, there would be a less than
proportionate decrease in the quantity demanded of the iPad. This shows
that the iPad is cross inelastic.
Conclusion
The price of the iPad is highly priced as
compared with its original cost of production.
Yet consumers are still willing to pay for it.
(High Demand)
Therefore due to the law of scarcity, there is
upwards pressure on the price, where price
equilibrium is the current price of the iPad.