Supply and Demand Analytical Paper Assignment Example | Topics and Well Written Essays - 500 words

Supply and Demand Analytical Paper - Assignment Example Everybody knows that Apple compete with quality for it to remarkably set a highly competitive price for its product offerings. In the case of Apple, competitive price does not necessarily mean to be lower prices compared to its competitors’. In fact, in most of the time, it is higher than the others. However, it is clear that there is an ongoing high demand for Apple’s iPhone products despite its comparatively higher price than the competitors’ offerings’. The law of demand states that the price is highly associated with the number of quantity demanded and vice versa. This means that there will be more quantity demanded for a certain offering if the price goes down or as the price goes down, more quantity for the product will be demanded. As stated in Figure 1, the law of demand simply states that price has a linear relationship with the number of quantity demanded. However, knowing that Apple sells iPhone products at a price higher than its competitors’, considering a staggering increase of its revenue and profit, is an indication of increasing demand for its product offerings. On the other hand, there is a significant indication that the use of mobile phones has become a reality or part of life. In Europe alone, there was an ongoing perception that there will be no enough available frequency to satisfy the demand for talking, texting and surfing the Net on mobile phones (O’Brien). The broadcast spectrum is simply becoming a limited commodity for as long as more users are inclined to buy mobile phones and use them for either talking, texting or surfing the Net. As a result, there is no question as to why there is an increasing demand for Apple’s iPhone even if it was set at a higher price. Mobile phones, particularly smart phones, are not just wants but are becoming strong basic commodities. Apple has continued innovation of products that have improved functionalities that are known to use wider broadcast spectrums. In this case,