How APPLE I PAD deals with economics

Economic concepts relating to the company apple with the product I PAD  :

DEMAND  :  In economics demand is the desire to own anything., it is willingness and ability to consume a given good. Basically demand refers to how much of a product or service is desired by buyers.

As iPad is a luxury product and it is high in demand buy the consumers because of its high build quality and the number of features it provides. It is also high in demand in terms of experience, technology and customer satisfaction. Over the years the demand for the iPad has increased since the desirability of the product is high.

FACTORS AFFECTING DEMAND ON I PAD :

There are the substitutes which affect the demand of iPad

1.       Income of buyer : It represents the  power of the buyers

2.       Technology : How strong the product is as per the market standards

3.       Brand image : The value of brand is very high i.e., apple products are in high demand

4.       Advertising campaign : Advertising of iPad helped in creating interest among the people and thus an increasing in demand of the product.

PRICE ELASTICITY OF DEMAND :  The elasticity of demand measures how much the quantity demanded response to change in price.

As apple iPad is a luxury good whose elasticity is less than 1 . i.e., change  increase in price of iPad would merely affect the quantity demanded hence it elasticity is less than one .

SUPPLY : The law of supply states that an increase in price of the good tends to increase in quantity supplied . as in case of iPad there is a huge increase in the sales of the company apple as it proves there was a huge growth in demand. Since there is a huge growth in demand , which led to an increase in the sales. So increase in sales led to increase in supply of the company

COMPLIMENTARY PRODUCTS OF I PAD : The complementary products of iPad are :

Paid applications : The apps are one of the main things on the iPad . as there are paid and free apps which can be downloaded and used from app store

I Pad cover : It protects the screen of the iPad and is flexible thus provide a support while watching videos

I pad accessories like the apple iPad dock, earphones, headphones, wireless speakers.

 An  increase in demand of iPad would cause an increase in demand for the applications, and its accessories.

PRODUCTION FUNCTION : A production function is the function that specifies the output of the firm, or economy for all the combination of inputs.

Since the apple company needs to produce more and more i pads it requires more raw materials and more labor , where the labor and raw materials required is also increasing by the growth rate.