Food of thought (economics questions)


Instructions: Answer both questions within 5 to 8 sentences each. No citations needed, just explain the questions well. Thanks! Also there is an attachment with Question#2 which has been attached. 
Question # 1

Many people love their I-phones and spend hours glued to their phones. Apple has always sold a premium product and consumer satisfaction has always been pretty high. Apple’s recent sales of I-phones in Q4 of 2018  were disappointing. This is also a industry trend as nearly everyone who wants a smart phone already has one. Apple kept trying to raise sales in dollars by raising the price until people stopped buying(and slowdown in China with really cheap smart phones didn’t help) Should Apple continue with higher prices or should it be focuses more on unit sales? What about service revenue? How is that affected by I-phone pricing? How does elasticity affect your decision on pricing if you are an Apple consultant? Why is Apple stock so cheap relative to the market? Why do analyst value service revenue more than iphone sales? Explain. 

Question # 2
People are concerned that global temperatures are rising and this threatens the global economy. Many blame this on burning of fossil fuels and carbon emissions. Please read the scanned article and comment on what you think. Make these 2 assumptions. First assume that you believe that fossil fuels contribute to global warming. Second you are politically agnostic. What is the best aspect of the tax  and what is the worst aspect? Explain

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