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When the Apple IPhone 3G Was Introduced the Apple ITunes

question 86

Multiple Choice

When the Apple iPhone 3G was introduced the Apple iTunes web site also began selling small program "apps" written by third parties that could be run on the iPhone.One interesting app was the "I Am Rich" application.For a price of $1,000 you could buy this app that did nothing but display a red gem on the iPhone's screen.The description of the app stated that this red icon would remind you (and others you show it to) "that you were rich enough to afford this." Six of the applications were sold before Apple Inc.removed the app from iTunes.At the $1,000 price the author of the app was using _____ pricing as part of his marketing approach.

Identify the concepts of complement and substitute goods and their impact on demand.

Distinguish between normal and inferior goods and how income changes affect their demand.

Comprehend how various factors, including income, prices of related goods, and external influences like health benefits, affect the demand and supply curves.

Recognize the economic effect of changes in price on quantity demanded versus shifts in the demand curve.

Definitions:

Market Price

The live market price at which an asset or service can be bought or sold.

Weighted Average Cost of Capital (WACC)

A calculation of a company's cost of capital, weighted by the proportion of each source of capital (debt and equity), used to see how much interest the company pays for every dollar it finances.

Cost of Preferred Stock

The dividend required to be paid by an entity for the funds received from issuing preferred shares, typically expressed as a percentage.