â€œTo ring in the 10th anniversary of the iPhone, Apple on Tuesday is delivering a handful...

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Economics

â€œTo ring in the 10th anniversary of the iPhone, Apple onTuesday is delivering a handful of new smartphones that wonâ€™t justchallenge your daily tech habitsâ€”no more home button!â€”but lightenyour bank account, too. The new iPhone is expected to come with a$1,000 price tag, making it the most expensive Apple phone to date.Thatâ€™s a decent leap from the iPhone 7 Plus, currently Appleâ€™s mostexpensive phone ever at $769. The new device, in contrast, willapproach the cost of a computer. But Apple has good reason tobelieve this jump wonâ€™t hurt it.â€
Conclude what Apple must have believed about the priceelasticity of demand for iPhones in 2017 and why that implies ahigher price could be a good business decision. Briefly explainyour answer.

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It has been stated that Apple is launching a new iPhone at much higher price than its earlier devices Even at this high price Apple is confident of selling significant number of devices and earning greater revenue relative to previous launches As we know that as per the Law of See Answer

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