Wednesday, November 16, 2011

Unit 1: Cross elasticity of demand and the Kindle Fire

Can this be true? Planet money report each kindle fire is sold at a loss!

http://www.npr.org/blogs/money/2011/11/16/142310104/why-amazon-loses-money-on-every-kindle-fire?ft=1&f=93559255

a) Using the concept of cross elasticity of demand, explain why Amazon would want to sell the Kindle Fire at a loss

No comments: