1- Two months after launching the 8 GB iPhone in 2007, Apple reduced its price from $600 to $400. Unit sales not only increased, they soared. Quarterly sales increased from 600,000 phones to 1.2 million. a, How much did total quarterly revenue increase as a result of the price cut? $ million b. Because the price dropped and revenue increased, is the price elasticity elastic or inelastic? c. What is the price elasticity of demand for apple iPhones? round to 2 decimal points). d. To increase revenue even more, should apple raise or lower the price? e. To maximize revenue apple should seek a price elasticity of (Please

1- Two months after launching the 8 GB iPhone in 2007, Apple reduced its price from $600 to $400. Unit sales not only increased, they soared. Quarterly sales increased from 600,000 phones to 1.2 million. a, How much did total quarterly revenue increase as a result of the price cut? $ million b. Because the price dropped and revenue increased, is the price elasticity elastic or inelastic? c. What is the price elasticity of demand for apple iPhones? round to 2 decimal points). d. To increase revenue even more, should apple raise or lower the price? e. To maximize revenue apple should seek a price elasticity of (Please

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 2PA

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