Author Question: Each year Apple Computers produces a new line of IPods with greater storage capacity and more ... (Read 46 times)

corkyiscool3328 · **on:** Jun 29, 2018

Each year Apple Computers produces a new line of IPods with greater storage capacity and more features. Sales continue to soar even though the prices each year rise as well.

Is this a refutation of the law of demand or is there something else going on here that doesn't meet the eye?

Question 2

Consider the following situation: your math professor tells your class that the mean score on the final exam is 43 . The exam was scored on a total of 100 points. Does this imply that you, too, scored poorly on the exam?

What will be an ideal response?

tuate · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

The law of demand states that there will be a inverse relationship between price and quantity demanded all other things being equal. In this case the good itself is no longer the same good. Its storage capacity and other features have simply drawn more customers.

Answer to Question 2

The mean is an average value of a set of observations. Although the mean score is representative of the values in the set of observations, a single value (for example, your exam score) could be very different from the mean. These outliers' could skew the mean toward being lower or higher than most of the other observations. So, it could be possible that you scored higher than, say 75, but your classmates' lower scores pulled the value of the mean downward.