The article "Samsung Stung by Apple Moves" related to the price cuts for the iPhone indicates that
A) The cross-price elasticity for iPhones and other cell phones produced by Samsung was negative.
B) Apple lowered the price for the iPhone because the cross-price elasticity between it and the other
Competitors was positive.
C) The percentage change in the quantity demanded for the substitute cell phones was increasing less than the percentage change in the price.
D) The demand for the iPhone was inelastic.

Question

Quizplus · Accepted Answer

The article indicates that Apple lowered the price of the iPhone, implying that the cross-price elasticity between it and other competitors, including Samsung, was positive. This means that a decrease in price for the iPhone would lead to an increase in demand for it and a decrease in demand for Samsung's cell phones. The other choices are not supported by the information provided in the article.

The Article "Samsung Stung by Apple Moves" Related to the Price