ECONOMICS PROJECT LIANGZI SHUWEI MELISSACHOO RACHITA GROUP 3

iPad

What is an iPad?  The first tablet computer developed by Apple Inc.  Announced on January 27, 2010  Used for web browsing, watching movies, or viewing photos  Able to import photos from a digital camera or SD card with the iPad Camera Connection Kit  Thin and light

Determining the price of an iPad  Determined by demand and supply Shortage of iPads Upward pressure on price Price tends to increase to reach equilibrium Quantity demanded and quantity supplied increases

Determining the price of an iPad Equilibrium is the point when quantity demanded is equal to the quantity supplied. Surplus of iPads Downward pressure on the price Price tends to decrease to reach equilibrium Quantity demanded and quantity supplied decreases

Associated Products for iPad

Consumer’s Point of View A.Price of substitutes  Substitute products are alternative products that satisfy the same wants or needs.  Principle Price of substitutes Demand for iPad

Fall in the price of Blackberry playbook will lead to a fall in the demand of iPads. Demand curve for iPad Consumer’s Point of View A.Price of substitutes

Consumer’s Point of View B. Taste  Less of it will be demanded at each possible price  Emergence of these new products may affect consumers’ taste  Likely to switch to buy these new products with more advanced function and better quality

Increase in the number of consumers would lead to a rise in the demand of iPad Demand curve for iPad Consumer’s Point of View B. Taste

Case Study : Roslyn High School Did you know? Roslyn High School recently bought 47 iPads to its students and teachers, in December. The school is aiming to give an iPad to each of the 1,100 students this year. Weighing Marginal Costs and Marginal Benefits Weighing Marginal Costs and Marginal Benefits CLICK!

Producer’s Point of View A.Price of product  The supply of iPad is affected by the price of the product  Emergence of substitutes poses challenges to the price of iPad  Have to adjust its price to be lower  A fall in the price of iPads  quantity supplied of iPads to decrease  Profits earned by firms will decrease  Induce the firms to supply less.

Producer’s Point of View B. Changes resulting from natural  Adverse changes such as bad weather, disasters, etc. will decrease supply  Production process is disrupted  Less is supplied at each prevailing price level or abnormal circumstances

Producer’s Point of View B. Changes resulting from natural or abnormal circumstances

Conclusion  Apple iPads have to compete by adjusting the price of iPads to an affordable level  Improving iPads with better quality and functions  Source for other countries for production of various iPad parts.

Acknowledgements    schools-using-ipad-as-a-learning-tool-increases/  Economics Notes

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