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Increase in Disposable income

Increase in Disposable income. iPad is considered as a form of luxury good. iPads would have a higher income elasticity of demand (YED> 1). When disposable income. more than proportionate in demand luxury goods. Incease total output. To maximize total revenue ,.

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Increase in Disposable income

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  1. Increase in Disposable income iPad is considered as a form of luxury good iPads would have a higher income elasticity of demand (YED> 1). When disposable income more than proportionate in demand luxury goods Incease total output To maximize total revenue, collaborating with other luxury brands to sell limited edition series of iPads

  2. From: http://www.singstat.gov.sg/pubn/papers/economy/op-e24.pdf

  3. Luxury good Demand Necessities Inferior good Income 0 Relationship between income and demand (YED>1) Ipad demand- income curve (0<YED<1) (YED<0)

  4. Taste & Preference of Consumers iPads have a unique design which makes it different as compared to other tablets. 9.50" (241.2 mm) It weighs only 601g and measures (9.50" x 7.31" ). 7.31" (185.7 mm) Its lightweight and compact design allows users to be able to use the product more conveniently. Its attractive design further improves iPad’s marketing and popularity to consumers.

  5. Apple also did product development tosuit the changes in taste & preferences of consumers 1. Improvement in physical appearance such as colours of the iPad to make it more stylish 2. development of iPad 2, which have various new features. Multi-Touch Instant On iOS 4.The world’s most advanced mobile operating system.

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