ECONOMIC CONCEPTS DEAL BY APPLE COMPANY

ECONOMIC CONCEPTS DEAL BY APPLE COMPANY

APPLE company produces the consumer electronics. They offer computers, phones, smart watches, tablets etc. These are the economic concepts that apple company deal.

1)      INCOME ELASTICITY OF DEMAND :-  If the income of the consumer is less he buys normal goods. If the income of the consumer is high then consumer changes to buy more luxurious good and it results in a negative income elasticity of demand. If an android user income increases then he may turn as IOS user.

2)      PRICE DISCRIMINATION :- It is a pricing strategy where different consumers are charged different prices for the same product or service. Apple charges different prices for the same product to different consumers based on geographical areas. It is called international price discrimination. They charge less price in USA and Canada compared to INDIA.

3)      PEOPLE RESPOND TO INCENTIVES :- While buying anything rational people make decisions by comparing the costs and benefits of the product. People always respond to incentives Apple offers few deals on certain days like Thanksgiving, Blackfriday, Boxing day etc., on such days they give discounts on phones in US and Canada market. Most of the people who wants to buy Iphone prefer to buy on that day. They are responding to the incentives provided by them.

4)      ELASTIC GOOD :- Apple is an elastic good. It has many substitute goods. As it is a elastic good if the price increases quantity demanded of that good will fall.

5)      OLIGOPOLY AND MONOPOLISTIC MARKET :- Market structure of apple is oligopoly when it comes to the smartphones. As there are very few firms that dominate apple in smartphone industry. When it comes to computers apple is in a monopolistic competition