Question
with info below QAW = -150,000 - 2400PAW + 1520 PG + 1200Pp - 1200P IPHONE + 44A QAW is the quantity of Apple Watches
with info below
QAW = -150,000 - 2400PAW + 1520 PG + 1200Pp - 1200P IPHONE + 44A
QAW is the quantity of Apple Watches sold per week
PAW is the price of an Apple Watch in dollars per unit;
PG is the price of Samsung Gear smartwatch in dollars per unit;
Pp is the price of the Pebble Steel smartwatch in dollars per unit;
P IPHONE is the price of an iPhone;
A is the quarterly advertising budget for Apple Watch in thousands of dollars
- Apple sold 177,200 watches per week.
PAW =349 Pg = 380, Pp= 220 PiPhone= $299 A = 15,000
QAW =-$150,000 - 2400(349) + 1520(380)+1200( 220) - 1200 (299) + 44(15,500)
QAW=$177,200
- The price elasticity of demand for Apple Watch is -4.726
-2400(349)= -4.726
177,200
what is cross price elasticity for apple watch and why? explain
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