The Apple Shell s Value Increases As The Lack Of...

Task 1 a) In this diagram, we see that the ‘Apple Shell’s value increases as the lack of availability makes it more scarce. b) This problem could be solved by increasing the total availability of the ‘Apple Shell product. This problem could also be solved by increasing the initial price of the Apple Shell, therefore reducing the demand of the product. This diagram shows that with a higher starting point the equilibrium point was reached sooner and therefore eased the supply problem that the initial product launch had. c) Price equilibrium is found where supply and demand are equal. This is the point where both sellers and buyers are happy with the price and quantity (B.Bisardi). For example in the electronic market in 2007, the entertainment company Nintendo was struggling to keep up demand with the sales of the Nintendo Wii. It had wanted to sell seventeen million units, but was only able to sell fourteen point five units due to supply issues. (Cleland, 2007).This shows that while demand is high, Nintendo still had problems with its supply and therefore at the time Nintendo had not found its price equilibrium at that time. Which goes to show how the price equilibrium is very difficult to find and in such a fast moving industry, it is even more difficult. d) Price elasticity of demand (PED or Ed) is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price (Bisardi Sung,Show MoreRelatedApple Strategic Management4234 Words   |  17 PagesSTRATEGIC MANAGEMENT Apple, Inc. Strategic Management Case Analysis Kait Vinson 4/18/2011 Vinson |1 STRATEGIC MANAGEMENT CASE ANALYSIS: APPLE INC. SECTION ONE: CORE PROBLEMS ISSUES In the transition from Apple Computers, Inc. to Apple Inc. over the past decade, the company has faced many problems with its strategy in regards to navigating the personal computer industry. 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