1. From the article: "Sales of iPhones peaked in 2015, and the company has been focused on persuading customers to replace old devices?a much tougher task amid an economic crisis." Older generations of iPhones are substitutes for a new generation iPhone. Name another substitute for a new iPhone. Explain how a decrease in the price of this substitute would affect the demand for new iPhones. The cross-price elasticity is used to measure the relationship between two related goods. What is the formula used to derive a value for the cross-price elasticity of demand? Would the cross-price elasticity of demand between iPhones and a substitute for an iPhone have a positive value or a negative value? Explain in detail.

this need to be answer from article.

Gold Climbs to Highest Point in More Than Two Weeks Weak economic data, political uncertainty cited Gold, a popular destination for nervous investors, is approaching a six-year high reached earlier this month. PHOTO: MICHAEL DALDER/REUTERS By Ira Iosebashvili Updated Sept. 24, 2019 4:18 pm ET Gold prices rose to their highest level in more than two weeks Tuesday, buoyed by weaker U.S. economic data and news that House Democrats plan to discuss the impeachment of President Trump. Gold for September delivery was up 0.6% to $1,532.10 a troy ounce on the Comex division of the New York Mercantile Exchange, its highest since Sept. 4 and approaching a six-year high reached earlier this month. A measure of U.S. consumer confidence from the Conference Board eased in September from the prior month and a gauge of manufacturing activity across mid-Atlantic states softened this month, data showed on Tuesday. The numbers bolstered the case for the Federal Reserve to continue easing rates in coming monthsa tailwind for gold, which struggles to compete with yield-bearing investments when rates rise. Political uncertainty is also giving gold a boost. House Democratic leaders plan to hold an all-caucus meeting Tuesday to discuss impeachment of President Trump following reports that he pressed Ukraine to investigate Democratic presidential candidate Joe Biden and his son. Mr. Trump has denied any wrongdoing related to Ukraine. Gold is a popular destination for nervous investors, who believe the metal will hold its value better than other assets during turbulent times. Other haven investments, such as Treasurys and the Japanese yen, also strengthened. Meanwhile, worries over global trade weighed on oil prices after President Trump said he would not accept a \"bad\" trade deal with China at an address before the United Nations. U.S. oil prices were recently down 2.3% at $57.29 a barrel. Brent crude, the global standard, was off 2.6% to $62.09 a barrel. Write to Ira Iosebashvili at ira.iosebashvili@wsj.com Precious Metals Enjoy Resurgence in NegativeYield World Investors seek assets that can hold their value in troubled times Precious metals are soaring after months of sideways trading. PHOTO: PHOTO ILLUSTRATION BY EMIL LENDOF/THE WALL STREET JOURNAL; PHOTOS: ISTOCK By Ira Iosebashvili and Amrith Ramkumar Updated Sept. 5, 2019 4:40 pm ET Investors are piling into precious metals at the fastest clip in years, driven by a plunge in global bond yields that has fueled a search for assets that can hold their value during troubled times. Gold purchases by everyone from central banks to retail buyers have boosted the metal to its highest level in six years, with a coterie of famous investors now touting its role as a haven from market turmoil. Silver and platinum have outpaced all other major asset classes so far in the third quarter, while palladium is up about 30% this year. The sudden interest in precious metals follows years of sideways trading as investors bet that steady growth would allow the world's central banks to raise interest rates and end an era of miserly debt yields. Instead, a deepening trade war between the U.S. and China has weighed on the outlook of nearly every major economy, adding pressure on many central banks to further cut rateseven those that already stand below zero. Newsletter Sign-up Precious metals fell sharply Thursday as stocks and other risky investments rallied on hopes that coming trade talks will relieve some pressure on the world economy. Gold, silver and platinum each dipped 2% or more, trimming some of their sizable quarter-to-date gains. While these nonyield-bearing assets struggle to compete with bonds when the outlook for the world economy is stable, their appeal has risen as negative rates have proliferated in Europe and Japan. It also has boosted interest in stocks that are expected to pay high dividends even when growth slows, such as shares of utilities and makers of consumer products. \"There is so much flight to safety right now and metals is where a lot of that money is going,\" said Bob Haberkorn, senior commodities broker with RJO Futures in Chicago. \"Traders that had been out of the metals market are coming back...and there's been a lot of buying from new accounts,\" Mr. Haberkorn said. \"It's been great, great for business.\" Key CatalystThe yield on the benchmark 10-year U.S.Treasury note has fallen steadily, makingassets that offer no yield for holding themmore attractive to investors.10-year U.S. Treasury yieldsSource: Dow Jones Market DataNote: Bond yields fall as prices rise. %July '19Aug.Sept.1.41.61.82.02.2 Another factor boosting them this summer: falling yields and growth fears have dragged a long list of currencies, from the euro and British pound to the Chinese yuan, to their lowest levels in years. Unlike currencies, gold and other precious metals aren't under the sway of any global central bank, further heightening their appeal. Additionally, while stocks remain near records, a recent burst of market volatility has unsettled many investors. So has a steady world-wide decline in bond yields that many believe is a harbinger of weaker growth. Although they rebounded Thursday, yields on the U.S. 10-year Treasury note dropped near a record low earlier in the week as disappointing manufacturing data and trade tensions pushed investors into government bonds and other safe assets. Yields fall as bond prices rise. In Europe and Japan, some bond yields have been negative for years, and investors expect they will fall further as the European Central Bank and Bank of Japan unleash more monetary stimulus. More than $15 trillion in government debt around the world now has a negative yield, meaning essentially that savers holding these bonds are paying the government to store their money. \"Gold yields zero, but zero is still much better than negative,\" said Bart Melek, head of commodity strategy at TD Securities. Hedge funds and other speculative investors are wagering on further gains. They have pushed net bullish bets on gold to their highest level since 2006, as far back as Commodity Futures Trading Commission figures go. They also have lifted bullish wagers on platinum and silver, which both are on track for their best quarter in several years, according to Dow Jones Market Data. Their advance comes after years of tepid investor interest, particularly in platinum, which is used as a component in auto exhaust filters for diesel engines. Platinum prices had previously tumbled as environmental concerns cut demand for diesel vehicles across the world. But the precious-metals rally spread to platinum in July, and prices logged their biggest weekly gain in eight years last week, advancing nearly 9%. The gains have rippled to shares of companies that mine the metals, in part because mining stocks offer individual investors easier exposure to the sector than trading metals futures contracts. The NYSE Arca Gold Miners Index is up about 40% this year, and shares of some smaller precious-metals producers have risen even more than that. Royal Gold Inc. is up 58% for the year, while First Majestic Silver Corp. has climbed 70%. After an extended stretch of rangebound trading, the combination of falling rates and sluggish economic activity set up the sector's rally this quarter, said Rhona O'Connell, head of market analysis for Europe, the Middle East, Africa and Asia at INTL FCStone. \"It was looking a bit like a pressure cooker,\" she said. \"It's a sharp move that becomes self-fulfilling because you get the momentum traders involved.\" To receive our Markets newsletter every morning in your inbox, click here. SHARE YOUR THOUGHTS Do you own (or have you owned) precious-metals assets? How have they performed for you? Join the conversation below. Write to Ira Iosebashvili at ira.iosebashvili@wsj.com and Amrith Ramkumar at amrith.ramkumar@wsj.com Would You Buy an iPhone Now? Coronavirus Tests Demand for Apple's Flagship Product First hit by a supply slowdown, company now must reckon with global demand for its new phones expected this spring and fall An Apple billboard advertisement in Paris this month. PHOTO: ADRIENNE SURPRENANT/BLOOMBERG NEWS By Tripp Mickle Updated March 26, 2020 5:38 pm ET After losing his job last week as a sports-radio producer, Adam Michaels scrutinized his family's spending. Among this year's planned cutbacks amid the economic devastation wrought by the coronavirus pandemic: no new iPhones. It is a departure for the 42-year-old Chicago-area resident, who typically buys his family four new iPhones every two years. \"The expense is not worth it right now,\" Mr. Michaels said. The question of consumer demand looms large for Apple Inc. AAPL +1.47% as it prepares to unveil a new low-price iPhone model and soon must begin ordering components for its latest flagship smartphones, which usually are launched in the fall. The fall iPhones, which this year were expected to garner significant consumer interest because of the use of 5G wireless technology, make up a sizable portion of Apple revenue. An Apple spokesman declined to comment. Consumer demand in the age of coronavirus has quickly emerged as the biggest unknown for companies from soft-drink makers to airlines. European and U.S. lockdowns have triggered a sharp, unprecedented economic contraction that has left many businesses without a road map for what lies ahead. SHARE YOUR THOUGHTS Do you plan to buy new Apple products any time soon? Join the conversation below. Apple, which has navigated past economic challenges, has been whipsawed by the viral outbreak. The health crisis began in China, where it closed factories and eroded iPhone supplies. It then bounced to Europe and the U.S., forcing Apple to shut down stores and almost all activity at its Silicon Valley campus. Sales of iPhones peaked in 2015, and the company has been focused on persuading customers to replace old devicesa much tougher task amid an economic crisis. The less expensive iPhone heading to the market could be a better fit for a cost-conscious time, but its lower price and targeted audience emerging markets and existing customersalso will make it a modest contributor to Apple's bottom line. The new model, which has been compared with the $399 iPhone SE offered in 2016, was expected to be launched this month but might be delayed, analysts say. Apple's new flagship models are usually unveiled in September, so the 5G phones are months away. However, the company's operations team typically places orders in March and April for camera modules and other components for iPhone assembly in summer months, former employees said. They said orders dictate how many new devices Apple makes, and, under the shadow of the pandemic, consumer demand has never been more unclear. It is further complicated by lofty iPhone prices, after Apple three years ago raised its flagship models to $1,000a 50% increase that lifted revenue as shipments fell. Coronavirus Hits Companies in China, But They Still Have Reason to Stay YOU MAY ALSO LIKE UP NEXT 0:00 / 5:38 3:03 Coronavirus Hits Companies in China, But They Still Have Reason to Stay Coronavirus and trade tensions are testing the stability of global supply chains. While that's pushed some businesses to consider loosening their ties with China, WSJ explains why leaving the \"factory of the world\" is easier said than done. Photo: China Daily via Reuters The uncertain market has unnerved Apple's suppliers, who said they are now concerned iPhone shipments will decline this year instead of rise, as many analysts had expected. In 2018, suppliers suffered when Apple misread demand and slashed production, sticking some suppliers with excess inventory and underused production capacity. Apple's next quarterly report is due out in late April. The coronavirus outbreak has already hammered the smartphone industry, which last month shipped 38% fewer units world-wide amid China's shutdown compared with a year earlier, according to Strategy Analytics. It was the biggest single-month decline in industry history. Apple relies on Europe and the U.S. for about two-thirds of sales and faces growing risk as those countries now combat the public-health crisis. The U.S. on Thursday reported a record 3.28 million workers applied for unemployment benefits last weekfive times the previous record, as millions of businesses announced furloughs and layoffs. Apple's shares have fallen about 15% in the past month, in line with tech peers such as Microsoft Corp. and Facebook Inc. but less than the 28% decline in the S&P 500, according to FactSet. Apple Chief Executive Tim Cook has encouraged staff in emails not to worry about the challenges confronting the company. He indicated that Applewhich has about $200 billion in cash and cash equivalentsis prepared for this moment and will continue to invest in the future. The company has forged ahead with software updates and new products, including an updated MacBook Air and iPad Pro. Apple also has pushed to increase sales of apps with an App Store expansion into 20 new countries. Pressure to order the right number of components in the face of fastchanging consumer behavior is especially high as Apple moves into 5G, the next generation of wireless technology. The 5G models require pricier modems and more memory that analysts say will increase costs of materials by $100 a phone. RELATED Coronavirus and Store Closures: Tracking America's Retailers and Restaurants Being stuck with extra modems or unsold 5G iPhones could cut into the rich profit margins that helped make Apple the first U.S. company valued at $1 trillion, said Mehdi Hosseini, an analyst with Susquehanna International Group. He expects Apple to have component suppliers continue making iPhone parts as planned while it reassesses demand in May or June. The factories Apple relies on in China to make its products have restarted operations, but a stay-in-shelter order in California has forced staff to work remotely, complicating the well-oiled process that has long guided Apple's iPhone development. Apple is scrambling to prevent product delays. Unable to travel to China, its U.S. engineering team is using video calls to direct Chinese colleagues through iPhone prototype assembly at factories in Asia, people familiar with the matter said. The company previously did a test run of that process in January. The company last week also began allowing some engineers to take home prototypes of some future products, people familiar with the matter said, an unprecedented step for a company that has fired software engineers for coding off campus and used security staff to transport future iPhones. It asked employees not to discuss the new protocols. WSJ NEWSLETTER Get an early-morning coronavirus briefing each weekday, plus a health-news update Fridays: Sign up here. Trump Administration Plans Up to $12 Billion in Farm Aid to Ease Concerns Over Trade Disputes Announcement of emergency aid to farmers follows retaliatory steps by U.S. trading partners The Trump administration announced plans for relief for farmers amid concerns about the growing trade dispute's impact on the U.S. agricultural sector. Above, Don Bloss works on his farm in Pawnee City, Neb. PHOTO: NATI HARNIK/ASSOCIATED PRESS 2420 COMMENTS By Vivian Salama and Jacob Bunge Updated July 25, 2018 1:17 a.m. ET WASHINGTONThe Trump administration said Tuesday it would extend $12 billion in emergency aid to farmers amid signs the U.S. agricultural sector is beginning to feel the impact of President Donald Trump's escalating trade disputes with major U.S. trading partners. Agriculture Secretary Sonny Perdue said the U.S. government would provide incremental payments to support prices of some of the hardest-hit commodities, including soybeans, sorghum, cotton, corn, wheat and pork. \"This is a short-term solution that will give President Trump and his administration time to work on long-term trade deals,\" Mr. Perdue told reporters. Agriculture Department officials said the aid wouldn't need congressional approval. Mr. Perdue said the move, tentatively planned for the coming months, was in response to what he called U.S. trading partners' \"illegal retaliation\" to the policies of Mr. Trump, who has ordered tariffs on imports ranging from metals to materials to clothing to electronic parts. Those tariffs apply to goods from a broad range of countries, including China and those of the European Union. U.S. trading partners are retaliating, with ominous implications for the American Farm Belt. China, a huge market for U.S. agricultural exports, has applied tariffs on $34 billion worth of U.S. goods, including soybeans and pork. Other places applying retaliatory tariffs include allies such as Canada, Mexico and the EU. RELATED Harley Expects Tariffs to Hit Margins EU Counts on Juncker to Calm Trade Fight Tariff Dispute Threatens China's Thirst for U.S. Oil European Commission President Jean-Claude Juncker is scheduled to meet with Mr. Trump at the White House on Wednesday, and trade is expected to be high on the agenda. Mr. Juncker is expected to try to dissuade Mr. Trump from further escalation of trade fights, particularly over automobile imports to the U.S. Congressional lawmakers, with few exceptions, expressed skepticism about the administration's aid plan. Farmers, the critics said, need certainty on trade, not a bailout from the government. Even GOP senators who usually defend Mr. Trump expressed worry that aid might have to be extended to other sectors if he continues his trade fights on various fronts. Trade's Widening Battleground \"What's the strategy, what's the end game here? At what point do we start seeing things move out of the chaotic state they are in now and to where we actually see new trade agreements?\" asked Sen. Mike Rounds (R., S.D.). Sen. Heidi Heitkamp (D., N.D.) said more aid might be needed if Mr. Trump continues imposing tariffs and other countries retaliate. \"Twelve billion sounds like a lot of money, but we're going to be losing literally hundreds of millions of dollars in every state\" due to the trade disputes, she said. Republican lawmakers from farm states said they expect to meet Wednesday afternoon with Mr. Trump, following his meetings with European officials. U.S. trading partners have targeted retaliatory tariffs on U.S. exports from rural communities, areas that supported Mr. Trump and Republicans in the 2016 election. Polls suggest farming communities remain supportive of Mr. Trump. Victor Miller, who raises soybeans, corn and hogs near Oelwein, Iowa, said the Trump administration had recognized the financial strain some farmers face due to declining livestock and crop prices. \"Yeah, there's going to be some pain immediately,\" Mr. Miller said. \"But that pain, endured, will lead to a much better future for all of us,\" he predicted. Related Video Why the Japan-EU Trade Agreement Deserves a Closer Look WSJ's Gerald F. Seib looks at the trade deal between Japan and the EU, and explains how President Trump's trade policy might drive other countries to form their own agreements. Photo: Martin Bureau/Press Pool Farmers are beginning to feel the pain of Mr. Trump's brinkmanship on trade. Soybean futures prices this month hit their lowest point in nearly a decade. They have fallen by 16% since the end of May, as agricultural traders weighed the potential impact of tariffs levied by China this month. Donald J. Trump @realDonaldTrump China is targeting our farmers, who they know I love & respect, as a way of getting me to continue allowing them to take advantage of the U.S. They are being vicious in what will be their failed attempt. We were being nice - until now! China made $517 Billion on us last year. 7:20 AM - Jul 25, 2018 80.4K 40.7K people are talking about this Twitter Ads info and privacy China, the world's largest soybean consumer, last year bought $14 billion worth of the oilseeds from the U.S., but the Department of Agriculture this month projected that the tariffs would erode U.S. exportsand help push domestic soybean stockpiles for the coming crop year to a record 580 million bushels. Corn and wheat prices also have been weighed down by tariff concerns, with China placing duties on those U.S. crops this month. Hog farmers and pork processors are dealing with a 62% tariff on pork shipped to China and a 20% duty in Mexico, after both countries increased tariffs in early July. Mexico and China both rank among the top buyers of U.S. pork, and lean hog futures have dropped about 13% in the past two months. Trump administration officials have acknowledged the financial hardship farmers could face as major trading partners retaliate against food commodities, but say farmers will share in the benefit of new trade policies that the administration says will be fairer to U.S. interests. Newsletter Sign-up Mr. Trump, addressing a gathering of veterans groups on Tuesday, urged patience on trade, despite concerns raised by critics: \"Just stick with us,\" he said. \"It's all working out.\" The plan announced by Mr. Perdue also includes purchases of surplus agricultural commodities for distribution to food banks. And the government will fund trade promotion to find new export markets for U.S. agricultural products. Asked if he would support the aid to farmers, Sen. Thom Tillis (R., N.C.) said, \"I don't generally like federal bailouts, but if we're going to have these uncertainties in the agricultural industry...we just have to look at it.\" Earlier this year, the Trump administration imposed tariffs of 10% on aluminum imports and 25% on steel imports from Canada, Mexico and the EU. The president has also levied tariffs on $34 billion in imports of electronic goods, machinery and other products from China, with another $16 billion expected in the next few weeks. Mr. Trump has also asked his team to study applying tariffs to all vehicles entering the U.S., and said his administration would assess tariffs on a further $200 billion of a range of consumer products. Natalie Andrews and Siobhan Hughes contributed to this article. Corrections & Amplifications Republican lawmakers from farm states said they expect to meet with President Trump following his meetings with European officials. An earlier version of this article incorrectly stated that the lawmakers expect to meet with Mr. Trump ahead of his meetings with European officials. (July 24, 2018) Write to Jacob Bunge at jacob.bunge@wsj.com Appeared in the July 25, 2018, print edition as 'Trump Offers Trade Aid to Farmers