Question
(a)On March 13, 2014, The Straits Times (Online) reported that Xiaomi, a Chinese smartphone company, sold out 5,000 of its Redmi phones in Singapore in
(a)On March 13, 2014, The Straits Times (Online) reported that Xiaomi, a Chinese smartphone company, sold out 5,000 of its Redmi phones in Singapore in 8 minutes after its online sales kicked off.
i)Invoke the price elasticity of demand to evaluate the effect of the online sales on the total revenue received by Xiaomi for selling its Redmi phones.(6 marks)
ii)Supposed now there are more Chinese smartphone makers expanding their business to Singapore. Justify how this event might change the price elasticity of demand for Xiaomi's smartphone?
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Business Law
Authors: Henry Cheeseman
8th Edition
0133130649, 9780133130645
