Product Demand: The iPhone.
Instructions
- Read the Making the Connection short case titled Forecasting the Demand for iPhones in Chapter 3 of our textbook, and also be sure to watch the video right under the Making the Connection title (maybe a few times). Then post your first posting this week beginning to discuss what you’ve read and watched in the video.
- Then work on Problems and Applications 1.17, at the end of Chapter 3, answering and discussing the questions in that exercise.
respond#1
Can you think of an example of a change in a demand determinant causing a significant change in equilibrium price?
respond #2
How could you apply what you’ve learned in this TCO to your workplace?
Making the Connection Forecasting the Demand for iPhones
Answer Preview
In stable markets, when equilibrium has been reached, the prices of goods and services remain relatively unchanged. This stability occurs due to the equilibrium in which the demand and supply sides of the market are equal. When either of the two factors either the demand or supply changes, the prices will automatically be affected. By making predictions and increasing production, companies seek to ensure that the changes in demand for the products do not affect the equilibrium as the supply side already anticipates such changes.
Word Count: 600