1. How does Lowering the Price of the Apple watch to $238 (note the original price of $349)
   1. Calculate the Point Price Elasticity of Demand for the AppleWatch (this requires you to show your work, calculate the number and explain the results of the Price Elasticity of Demandin effect, is it elastic or inelastic and whyyou should use the original price and the new price of $238)?

QAW = -150,000 - 2400PAW + 1520PGearS + 1200Pebble - 1200PAPhone6 + 44A

PAW = $349 QAW = 177,200 PGearS = $380Ppebble = $220 PIPhone6 = $299 Advertising Expense = $15,500

1. Calculate this price reduction on Total Revenue (what is the initial total revenue when the price was $349).Noteuse the demand function to calculate the quantity demanded.

1. Given a Variable Cost that is provided on Page 5 of the lecture Powerpoint (and not including the sunk/fixed costs) what is the profit maximizing output given a price of $349?

1. How would Samsun reducing the price of their GearS to $255 impact the demand for the Apple Watch (use the original price from the paper and this requires a calculation and a numerical answer)
   1. Quantity Demanded for the Apple Watch - this requires a calculation

1. How much would Apple need to reduce their price to retain their market sales (this requires the calculation such that you stay at the same number of sales).