Question
Can you please help in providing the steps / calculations to arrive at the following answers: In the market for Apple's iPhone, the quantity demanded
Can you please help in providing the steps / calculations to arrive at the following answers:
In the market for Apple's iPhone, the quantity demanded is
QD = 20,000 - 20PA + 5PG + PS - 1000PM,
where PA is the price of the Apple iPhone, PG is the price of the Google Android phone, PS is the price of Samsung's device and PM is the monthly price of data per gigabyte.
This formulation of demand implies that the iPhone and the Android are seen as:
__2 ___1. complements or 2. substitutes. (Write 1 or 2 in the blank.)
This formulation of demand implies that consumers see which devicethe Android or the Samsungas the closest substitute for the iPhone?
__1 ___1. Android or 2. Samsung.(Write 1 or 2 in the blank.)
The iPhone supply equation is QS = -1300 + 30PA .
Assuming that the price of the Android is $300, the price of the Samsung is $200 and the monthly price of data is $3 per gigabyte, determine the equilibrium price and quantity of iPhones sold.
PA __$400__Q_10,700__
What are the own price elasticities of iPhone demand (ED) and supply (ES) at this P and Q?
ED__-0.75__ ES___1.12____
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