ECON 1050 Study Guide - Quiz Guide: Iphone 5S, Iphone 6
1 Nov 2015
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On september 25, 2015, the latest iphone was released to the world. Selling for a base price of it is an expensive piece of technology. Most likely not; but some have no problem with the price and were willing to wait in line for two days. The difference between these types of people is that they value the iphone differently. Therefore, when people value a product highly, it causes the scarcity of the product to increase. When a product is valued at a lower price, the opposite effects occur. As eveline adomait explains in cocktail party economics, only those individuals who value a particular thing above its price will actually purchase it (pg 27). There will always be people who are willing to spend almost a thousand dollars on a phone; after all, line ups to purchase the iphone 6s and 6s+ began as early as two days ahead of the official release.
