Changes in market equilibrium
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Apple unveiled a new free iBooks 2 application for the iPad that allows for interactive digital textbooks. Philip Schiller said the application provides a more dynamic and engaging experience for students to read and learn. He noted that 1.5 million iPads are already being used in educational institutions as the iPad is being rapidly adopted by schools. The application aims to disrupt the traditional textbook market.
Changes in market equilibrium
- 1. Changes in Market Equilibrium: Single shift By: Mr. Gayares
- 2. Apple unveils digital textbooks app for iPad NEW YORK—Apple is taking aim at the textbook market. The California-based gadget-maker unveiled a free iBooks 2 application for the iPad on Thursday that brings interactive textbooks to the popular tablet computer. “Education is deep in Apple’s DNA,” said Philip Schiller, Apple’s senior vice president of marketing. “With iBooks 2 for iPad, students have a more dynamic, engaging and truly interactive way to read and learn.” He said the iPad is “rapidly being adopted by schools across the US and around the world” and 1.5 million iPads are already being used in educational institutions.
- 3. Be a market analyst! • Analyze if the situation illustrates equilibrium, shortage, or surplus • Long line of customers on a small but famous foodstore • Pile of garbage from a plastic company • A mother bought from a store 10kilos of price at the price of 38/kilo • Job fair at MOA was full of people • 70% inventory sale of a factory • A company and a union of workers agreed to a new salary scheme
- 4. Review • Find the Equilibrium Price (EP) and Equilibrium Quantity (EQ) by using the formula: Qd= 100- 10p ; Qs= - 20 + 10p Using the formula, create a market schedule at the following prices: 4,5,7 and identify the market conditions.
- 5. Changes in Market equilibrium • When supply and demand curves shift, the equlibrium price and quantity changes • There are possible scenarios: it could be • CHANGE IN DEMAND WHILE THE SUPPLY IS CONSTANT • CHANGE IN SUPPLY WHILE DEMAND IS CONSTANT
- 6. Remember the non-price factors • Demand • Supply • Income (Normal and • Technology Inferior good) • Expectation • Occasion • Number of sellers • Preference • Cost of production • Population • Price of related • Expectation products • Price of related • Subsidy products : substitute • Weather/ climate and complement