Estimates presented in Exhibit 5 show that Android users have a higher price elasticity of demand for apps in the Google Play Store than do iPhone users in the Apple App Store. Why might Android users tend to be more sensitive to app prices than iPhone users? What categories or types of apps (for example, games/social media) do you think have the highest price elasticities?

Data in Exhibit 5

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Price $20 10 100 200 300 Quantity of pizzas delivered per week A Decrease in Demand EXHIBIT 5 In college towns, the demand for pizza delivery decreases substantially when students go home for the summer. A decrease in demand is a leftward shift in the entire demand curve. Fewer pizzas are demanded at every price.