Apple introduced the iPhone to the market in June 2007.Within two months,it had become clear that the price elasticity of demand for iPhones was
A) significantly higher than had been expected.
B) very close to original estimates.
C) significantly lower than had been expected.
D) essentially unit elastic.

Question

Quizplus · Accepted Answer

The fact that it became clear within two months that the price elasticity of demand was significantly higher than had been expected suggests that consumers were more responsive to changes in price than originally anticipated, indicating a higher elasticity of demand.

Apple Introduced the IPhone to the Market in June 2007