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This article is about high-end watch brand Tag Heuer cutting management and production jobs after a slowdown in demand for its luxury timepieces.

The luxury watch brand Tag Heuer is cutting down jobs in management and production as the demand for luxury watches are decreasing. The company has laid off 46 positions. And 49 people are temporarily laid off until the end of the year.

The rapid growth of countries like China has led to growth in the size of the markets for many luxuries. With incomes rising in emerging countries, demand for many the luxuries has been growing. However, in the past year, due to the recession in China and Europe, Prada expects its growth in sales to January 2015 will be 'low single-digit' - less than the 7% figure recorded for the last financial year.

The iPhone 6's demand continues to increase everyday, outstripping the supply it can provide to the people. This is a great example on how price mechanism works in our real world, where people are more attracted towards luxury products and would do anything to get it.

As I read ,Iphone 6 became a new hit in the World and it will continue to be.Regardless of its price people are tent to buy it all around the world.Demand is higher than as Apple expected .Changes in prices influence the production of goods and services and the demand for them so production will be more but whether they change the price or not there won't be a decreasing change on sales of Iphone6 which is an example of price mechanism

Iphone 6 has become the preferred product for mobile consumer users and seen as a sign of prestige as well as satisfaction derived from getting the latest product. Preference is a factor that influences demand of a product. Therefore the demand for Iphone 6 will continue to remain high in the market irrespective of change in price till consumers preference changes.

This is an article that explains what we've learned in the past few weeks, that necessities are inelastic compared to luxurious products. Furthermore it gives information about the customer types and even explains a strategy that can be used when consumer income elasticity is high. It also mentions that products have a "life cycle" and that this cycle is also a determinant in consumer behavior. Lastly, it adds that best method to determine income elasticity is to do research surveys.