According to an article in the Wall Street Journal in September 2018, “Apple’s iPhone unit sales for the nine-month period ended in June were largely flat with the same period the year before at a bit less than 170 million devices, yet iPhone revenue jumped 15% in that time, to $129.5 billion.”
a. How is it possible for Apple to have increased the revenue it earned from iPhone sales if the quantity of iPhones it sold didn’t increase?
b. Can the information in the quoted sentence tell us anything about the price elasticity of demand for iPhones? Briefly explain.