Assignment 1

(20 points)
Assignment 1: Economics
Instructions

Save this file in your course folder, and name it with Assignment, the section number, and your first
initial and last name. For example, Jessie Robinson's assignment for Section 1 would be named
Assignment1JRobinson.

Type the answers to the assignment questions below. Use complete sentences unless the question
says otherwise. You will have more than one day to complete an assignment. At the end of each day,
be sure to save your progress.

Review Lesson 4 of the Course Overview for instructions about turning in your assignments.

Assignment Questions

In Section 1, you learned about economic principles. Now, you'll apply what you learned.

1. Choose a well-known company that you know of, and answer the following questions
about it: Apple

a. Is this mainly a product-based or service-based business? (1.0 points)

Product-based business
b. What type of good or service is this company best known for? (1.0 points)

iPhone
c. What makes the company different from its competitors? (1-3 sentences. 3.0
points)

What makes the company different from its competitors is they have an entire eco system
of products that work well together. Apple will take other companies ideas and make them
better. A major difference is the quality of their products.

d. Why do you think this company became successful? Describe at least one reason.
(1-5 sentences. 2.0 points)
I think this company has become successful because they are always trying new things;
such as improving their devices.

2. Choose a different well-known company that you know of, and describe its direct and
indirect competitors. Describe at least 2 direct competitors and 2 indirect competitors. (1-5
sentences. 4.0 points)
Two direct competitors of Apple are Microsoft and Sony. Two indirect competitors of Apple
are Verizon and Android.

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3. Describe at least 3 nonprice competition strategies a company could use to convince
customers that its product is better than other similar products. Why would those strategies
matter to customers? (1-6 sentences. 3.0 points)
Three nonprice competitions strategies are sales promotions, special orders, and free gifts.
These strategies would matter to customers because it helps them save money and allows
perfect competition.

4. Describe a real or made up but possible example of a product that went through a time of
scarcity. What was likely to happen to the price of the product when it was scarce, and
why? (1-3 sentences. 3.0 points)
The iPhone X was at high demand but Apple was not prepared to serve the amount of
people. Do to this the demands were high and the supplies were low.

5. Describe a product you know of that has elastic demand. Why is the demand for this
product elastic? Explain. (1-3 sentences. 3.0 points)

The product that I know of that has elastic demand is the iPhone X. The demand for this
product is elastic because the price of the phone exceed way above the average amount.

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