Apple's IPhone Was Originally a Single Model in a Product

question 156

Multiple Choice

Apple's iPhone was originally a single model in a product line targeted at high-end users. However, lower-cost rival smartphones soon entered the market and Apple began to market multiple offerings itself. Here, Apple faces

• A) the inability to change prices quickly.
• B) speeding up the diffusion of innovation process.
• C) brand extension confusion.
• D) charging a lower price to gain a foothold in the market.
• E) the challenge of pricing multiple products in an expanding product line.

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Definitions:

Demand Curve

A graphical representation depicting the relationship between the price of a good or service and the quantity demanded by consumers.

Demand

The amount of a product or service that buyers are ready and capable of buying at different price levels over a specified time frame.

Increase

A situation where there is a growth or rise in figures, amounts, or indicators in an economic context.

Demand Curve

A graphical representation that shows the relationship between the price of a good and the quantity demanded by consumers.