Question
The care and feeding of my iPhone provides an interesting illustration of the role of competition and the ability of suppliers to price discriminate. I
The care and feeding of my iPhone provides an interesting illustration of the role of competition and the ability of suppliers to price discriminate. I wanted apps that would translate words (no need for full phrases or sentencesthat's done nicely on the iTranslate app) between German and English, and between Dutch and English. There were expensive ones, but the Dutch app was $24.99, while the German app was "only" $19.99. Far beyond my price range, so I shopped for cheap ones. The German app was $0.99, the Dutch app $1.99. The German apps at each level of complexity were more numerous than the Dutch, so it's not surprising that with more competition they should be less expensive.
How does increasing the total number of suppliers change the elasticity of demand facing each individual supplier? Explain.
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