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Suppose there is a technological advance that allwos Apple to make iphones

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2) Suppose there is a technological advance that allwos Apple to make iphones much more efficiently. In fact the retail price (ignoring the service contract) falls by 25%;a) If the short run price elasticity of demand is -0.8, how much does the quantity demanded change?;b) Is Apple better off or worse off? Why?;c) Demonstrate how and why the long run price elasticity of demand for Iphones would differ from the short run?;How does this technological advance impact the supply and/or the demand curve

 

Paper#29295 | Written in 18-Jul-2015

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