Asked by Patricia Christian on Apr 28, 2024
Verified
Apple has continued to be innovative to ensure that the demand for its products stays or becomes
A) More inelastic
B) More elastic
C) Unitary elastic
D) None of the above
Innovative
Relating to the introduction of new ideas, methods, or products.
Demand Elasticity
An indicator of the extent to which the demand for a product or service shifts as a result of variations in its price.
- Understand how product elasticity affects company strategy and consumer demand.
Verified Answer
HM
Howard MokoloMay 03, 2024
Final Answer :
A
Explanation :
By continuing to innovate, Apple is able to differentiate its products from competitors, making demand for its products more inelastic. This means that even if Apple raises the price of its products, consumers are still willing to pay because there are no close substitutes available. This gives Apple more power over pricing and enhances its profitability.
Learning Objectives
- Understand how product elasticity affects company strategy and consumer demand.
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