Dyne

**__ ** Project A  ** __** ** Steve Jobs, CEO of the Apple Company, first launched the iPad on January 27 2010. Apple designed, developed and marketed this line of tablet computers primarily as a platform for audio-visual media including books, periodicals, movies, music, games, and web content. ** **
 * ~ Student's Post ||~ Teacher's Comments ||

The price of the iPad is determined by considering the demand and supply forces. The decisions of producers determine the supply while the decisions of buyers determine the demand. When demand and supply interact, they determine its price. Changes in demand and supply will create movements in market prices that bring about changes in the usage of society’s resources. This is known as the invisible hand of the market.

** ** The iPod touch and iPhone are products related to the iPad because they are goods produced using the same resources since they have many similar functions. They run on the same operating system (iPhone iOS), are multifunctional, controlled by multi-touch display, use a virtual onscreen keyboard, have internet access over Wi-Fi to stream media, and install software – programs sold in the Apple App Store or approved by Apple. As a result, resources used to produce a related product cannot be used to produce an iPad, thus opportunity cost is incurred. **  || Answer the question. Don't provide irelevant points or details. Your details should be used to supprt your argument

You are not clear with the concepts of how prices are determined. The points that you mention has an effet on price but it does not determine it. Please read up your notes

How are these products related to iPad? Do you understand what is means by "related"? Read your notes. What are you trying to show with these details? || ** Price of substitutes  ** and ** price of complements ** are factors that will affect the demand for the iPad.  The Samsung Galaxy Tab is launched shortly within a year, following that of the __ iPad __. Both devices are from the Tablet PC Market. The Samsung Galaxy Tab is a cheaper alternative to the __ iPad __, leading to a rise in quantity demanded for it, but a fall in demand for __ iPad __. This means that the demand for __ iPad __ is likely to be very responsive to the change in price of Samsung Galaxy Tab. Such competition will affect the marketing and pricing decisions for the __ iPad __. The price of the __ iPad __ can be set at a lower value, or promotions can be put up to market the __ iPad. __ __  Apple  __ apps (applications) are produced by professionals at good quality, hence they are charged at a high price. This leads to a fall in the quantity demanded for __ Apple __ apps as the prices of the apps are too high. This will lead to an increase in the demand for the cheaper Android apps as consumers will prefer Android apps that have similar functions as Apple apps.  Samsung Galaxy Tab works on the Android OS (Android apps) whereas the __ iPad __ works on the __ iPhone __ OS (Apple apps). The demand for iPad varies inversely with the price of the Apple apps and the demand for Samsung Galaxy Tab varies inversely with the price of the Android apps, ceteris paribus. The demand for Samsung Galaxy Tab will increase along with the rise in quantity demanded for the Android apps, while that of __ iPad __ will decrease along with the dip in quantity demanded to Apple apps. The price of the iPad can be reduced, so that consumers will be more willing to purchase the iPad despite the high price of the Apple apps.   ** Changes in the number of sellers **and ** changes resulting from nature or abnormal circumstances ** are factors that will affect the supply of the iPad.   The iPad 2 was launched on 25 March 2011, hence suppliers will decrease their supply of the iPad, but increase that of the iPad 2, since consumers will be more interested in purchasing the iPad 2 instead of the iPad due to a change in taste. This results in changes in the number of sellers of the iPad. This causes the supply for iPad to decrease, and hence, it affects the marketing and pricing decisions for the iPad. The price of the iPad can be reduced to attract more buyers.   The recent Japan disaster which occurred on 11 March 2011 will result in the short supply of liquid crystal displays, a component used to manufacture the iPad. This disrupts the production process. Less is supplied at each prevailing price level, hence a supply shock occurs. Therefore it affects the pricing and marketing decisions of the iPad. As supply decreases, producers will increase the price of the iPad, to drive consumers who are unwilling or unable to pay out of the market.
 * Project B **
 * Project B **


 * 1. These are just statistics and there is no meaning to it unless you are able to interpret what it is trying to show using economic theories that you have learnt.

2. If you are mentioning on the price of substitutes, what is the impact on the price and quantity of iPad. Please provide economic analysis. So after equilibrium price and quantity of iPad being set, what would Apple do in terms of marketing and pricing of iPad to tackle any problem to achieve iss objective? In this case, what concepts should you bring in. Go and do some reading up

3. Same problem as before.

4. So what is the main idea here? what does the difference in the Apps for the tablets affect? What is the main factor here? Then subsequent would be the same problem as before.

5. Firstly, how can producer increase the price because cost of production change?This is a misconception. Is there evidence to show that cop would change from your research?So what happens to equilibrium price and quantity if there is a change in COP? Is there a need for firms to come up with pricing decision strategies?

Have you learnt about other firm's objectives? What is the firms's objective that you learnt of. This is not a correct factor. So what is the main idea here? what does the introduction of iPad 2 affect? What is the main factor here? Then subsequent would be the same problem as before.

Comments: you have too many points but all not elaborated and explained. Your group also fail to answer the requirements for project B. ||

**__Bibliography__** **(Project A)** [] [] [] [] **(Project B)** [] [] [] [] [] [] [] []

Group Members: Kimberly Tan Winnie Teng Toh Hsin Fen Mendi Ang Tan Chong Wei Charles Eng