Answer:
1. iPhone X is price inelastic. This is because the price preys on willingness to pay of its loyal and captive customer base. These customers are willing to pay a high price for the brand image and high quality of features expected from iPhone X. Secondly, iPhone X is a luxury product, following the features of snob effect from its customers. The higher the price, the higher the status symbol. Thirdly, the customers have been used to using iPhone X for a long time and are reluctant to switch over to another brand. So iPhone X is price inelastic.
2. Apple and Eagle used premium pricing strategy because they both had established reputation and goodwill in the market. They both had loyal followers who valued quality over price. So, premium pricing was a quality statement of that customers/ fans could expect nothing less than the best performance.
3. iPhone X would NOT have a substitute in the form of a Samsung Galaxy or a Google Pixel. Customers pondering over the purchase of an iPhone X would consider a choice between a good computer/ laptop and iPhone X.
Apple made headlines by announcing that the price for its new iPhone X (a fancy term...
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