Apple is one of the biggest companies in the world specialised in producing Apple's product. One of the products that the company has majorly focused on is producing iPhone mobile phones. According to the reports, iPhones are the best products in the market as demand increases with supply. In the recent years, the company has majored into manufacturing other products which have increased its economic growth. Apple’s products are luxuries since they are more expensive compared to other phones in the market. As such, they can only be affordable to people with high-income.
IPhones are elastic product since that they are luxuries and not necessities. People can do without them, and the increase in prices could lead to customers opting for substitute products. In business, elastic goods and services are those necessities in which people cannot live without them. Based on the reports, Apple's product majorly targets a certain segment of the people. As such, the majority have opted for other products which are much cheaper compared to their products. However, that doesn't indicate that the demand for their products has reduced over the years. In fact, more people are willing to pay that extra price for them to own Apple's products. In that case, the price demand of the iPhone is considered to be elastics as demands changes with the increase of price.
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The income elasticity of the product is greater than 1 since the increase of prices does not affect the demand for the products. Since its establishment, iPhone is known to be much expensive, and yet the demand on the market has significantly increased over those years.
Based on the products history, iPhones are considered to be normal since they have remained relevant in the market all those years. In fact, they are the majorcompetitors in the market regarding mobile phones.