Answer to Question #157897 in Microeconomics for Jaime Gauthier

Question

Competitive market Discussion: In your responses, comment on at least two posts from your peers and share an example of a company that experienced a change in revenue as the result of a change in the price of the good or service they provided. After reading your peers’ posts, explain which determinants of price elasticity of demand could be the cause of the change in demand.

Answer 1

Apple company experienced a change in revenue as a result of change in price of the Apples iphone they provide.

The determinants of price elasticity that caused change in demand included: there were close substitutes with competitive products,the prices of substitutes were lower than that of Apples iphone and the income levels of most people can afford iphones of cheaper price.