Two months after launching the 8 GB iPhone in 2007, (Apple] reduced its price from $599 to $399. Unit sales not only increased, they soared, as the In the News “After IPhone Price Cut, Sales Are Up by 200 Percent” reports. Refer to the article and this price-cut information to answer one question. IN THE NEWS After iPhone Price Cut, Sales Are Up by 200 Percent Piper Gene Munster, the person responsible for a survey dedicated to Apple in which he “found” out an estimated number of iPhones that were sold, has come up with yet another interesting theory According to Munster and the past-week Apple announcement about 1 million iPhones sold, the calculations take to the conclusion that after the price cut, the sales increased up to 200 percent By Munster’s reckoning. Apple and AT&T were selling an average of 9,000 Phones a day before the price reduction, which would have put their quarterly sales at 594,000 as of September 5 By the end of the quartor, he believes Apple will have sold a total of 1.28 million iPhones Source, September 11, 2007 What was the quarterly price elasticity of demand for iPhones in 2007 Instructions: Round your response to one decimal place

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