Final answer:
Without specific data for iPhones in 2007, an exact quarterly price elasticity cannot be calculated. However, due to the iPhone's unique position in the market at that time, the demand may have been inelastic as consumers were willing to pay a premium with fewer substitutes available.
Step-by-step explanation:
The student's question asks, "What was the quarterly price elasticity of demand for iPhones in 2007?" To calculate the price elasticity of demand, we would need data on the change in quantity demanded and the change in price between two points. Since no specific data on iPhones for 2007 has been provided, a general explanation is required instead.
The price elasticity of demand is a measure that calculates the percentage change in quantity demanded of a product in response to a percentage change in its price. If the demand for a product is elastic, a small change in price results in a larger change in quantity demand. Conversely, if demand is inelastic, a change in price leads to a smaller change in quantity demand. Generally, luxury items like smartphones tend to have more elastic demand, as consumers are sensitive to price changes. However, when the iPhone was first introduced in 2007, its uniqueness and brand appeal could have caused the demand to be more inelastic since there were fewer substitutes available, meaning the demand response to price changes could have been lower, indicating a potential answer of either (b) Low or (a) Very Low.