1.0 Article Summary
The article of “APPLE’S IPHONE PRICES IN AUSTRALIA JUMP 15 PER CENT OVERNIGHT”will discuss increasing the price of apple product which is a few of iPhones in Australia. According to Rayner, Rising the price of iPhones, it is because of the rate Australian dollar falls down. When first time apple introduced the new iPhone 6 and iPhone 6 plus on September 2014, AU$1 equals to US$0,89 (Rayner 2015). However, last year on March 2015, Apple company announced that AU$1 equals to US$0,77 (Rayner 2015). It means Australian dollar falls down 15 per cent that affects iPhones price rises. For instance, previously, the price of iPhone 6 in 16 GB storage is AU$869, however starting March 2015, the price is rised from AU$869 to…show more content… 2013, 3). What is the meaning of demand ? “demand is a relationship between price of the good and the quantity demanded of the good (Curtin University 2015).” The law of demand is, “Holding everything else constant, [ceteris paribus] when the price of a product increases the quantity demanded will fall, and when the price of a product decreases, the quantity demanded will rise (Curtin University 2015).” According to Curtin University, “Price and quantity demanded are negatively related, as the law of demand.” The demand curve In the figure 1, previously, customers who want to buy iPhone 6 in 16 GB storage must pay AU$869, however, they must pay more which the cost is AU$999 now and the quatity demanded from point X to point Y automatically decreases. It means that “there is a movement along from point A to point B because the price rises (Curtin University 2015).”
From this diagram, it shows that the price of iPhone 6 in 16 GB storage rises from AU$869 to AU$999. Because the price rises, the quantity demanded falls from 1,5 to 1,3.
“A definition of supply is a relationship between quantity supplied and the price of good (Curtin University 2015) .” What is supply ? Supply curve has relationship among the price of good and quantity supplied, when the sales of producers are affected remain the same (Curtin