Case 1: Fitbit is one recent marketing success story, selling more than 10 million units to health-conscious individuals who want to track their…

Case 1:

Fitbit is one recent marketing success story, selling more than 10 million units to health-conscious individuals who want to track their exercise routines. Apple then announces that it will sell an Apple Watch that tracks body activity and much more with 10 different sensors. Some Apple Watch models will sell for over $1 thousand. When the Apple Watch came out some people camped out at Apple stores to be the first in line to purchase them.

Case 2:

Tesla “leaks” information concerning a new all electric model they will sell for much less than the existing models. Before the car is was ready for market they had already taken sizable deposits from people willing to commit to a purchase of the car sight unseen.

Are the markets for Apple Watch and Tesla cars elastic or inelastic?

What is the impact on Apple and Tesla?

What is the impact on individuals who purchase the product?

What is the impact on an economy that is fueled approximately 70% by consumption?

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