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1. Apple CEO Steve Jobs alluded to the price a customer may have to pay to own an iPhone when he said that the steep and sudden price change was simply part of “life in the technology lane.” What did he mean? Beyond the simple exchange of money, what else might the price of such a product include?
2. Discuss the role that product demand played in pricing the iPhone. How did this demand influence Apple’s decision to price it high in the beginning and then lower it two months later?
3. Discuss how the availability of substitutes affects elasticity of demand for Apple products such as the iPhone.
3. How do you think the relationship of price to quality affects how customers perceive Apple products?
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