There Is a 60% Chance That a Customer Without a Smart

question 52

Short Answer

There is a 60% chance that a customer without a smart phone will buy one this year.There is a 95% chance that a customer with a smart phone will continue with a smart phone going into the next year.If 30% of target market currently own smart phones, what is the long-run percentage of the target market that will own smart phones?

---

Definitions:

Price Rise

An increase in the general level of prices for goods or services over a period of time.

Elasticity Coefficient

A measure of how much the quantity demanded or supplied of a good changes in response to a change in price.

Price Range

The spectrum of prices at which a particular good or service is sold, varying from the lowest to the highest amounts customers are asked to pay.

Inelastic Demand

A situation where the demand for a product does not significantly change in response to changes in its price.