Week-1 - Discussion 1(Chap3 Supply and Demand(graded Below...

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Discussion 1(Chap3) Supply and Demand (graded) Below is a recommended topic for this discussion. If your instructor chooses a different “Making the Connection” from this weeks’ readings or another alternate discussion topic, his or her chosen topic and any required work in MyEconLab or elsewhere will be in the instructors’ first posting. 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. MyEconLab video link to the Week 1 MyEconLab screen for both week 1 videos. As Apple attempts to forecast demand for its iPhone, it needs to consider two factors: competition from other firms producing smartphones and competition from substitute goods. Many consumers were shifting from regular cellphones and music players, such as iPods, to smartphones. The increasing availability of apps, including new mobile payment apps that can be used in place of credit cards, was increasing the usefulness of smartphones. Some consumers, though, preferred the use of tablets, such as Apple’s iPad or Samsung’s Galaxy Tab, with their larger screens, for checking e-mails or surfing the Web. Taking these factors together, Apple was optimistic that its iPhone sales would double by 2016 in comparison with 2012. As any firm does in forecasting demand, Apple faced a trade-off .Time will tell whether the future demand for smartphones will be as large as Apple and other firms were forecasting. [email protected]:6.90 1.17 [Related to the Making the Connection on page 77 ] An article in the Wall Street Journal in 2013 was titled “In India, iPhone Lags Far Behind.” According to the article, the difficulty Apple was having selling iPhones in India was “no small matter as Apple’s growth slows in the U.S. and other mature markets.”
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a. What does the article mean by “mature markets”? b. Why would sales of iPhones be likely to be slower in mature markets than in countries such as India? c. Would forecasting sales in mature markets be easier or harder than forecasting sales in countries such as India? Briefly explain. Source: Dhanya Ann Thoppil, Amol Sharma, and Jessica E. Lessin, “In India, iPhone Lags Far Behind,” Wall Street Journal , February 26, 2013. Q1. What does the article mean by “mature markets”? Ans. A market is mature when it has reached a state of equilibrium. A market is considered to be in a state of equilibrium when there is an absence of significant growth, or a lack of innovation. Or we can say mature markets refer to markets where the product has been available for some time and where there is not much additional room for growth in demand for the product.
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