There are 2 brands of cell phones that are almost identical

Reference no: EM13371563

There are 2 brands of cell phones that are almost identical except for some minor features: the A-Phone and the Pomegranate.

Part I

we will focus on the demand curve. Draw the demand curve for the A-Phone showing how the demand curve will change if the following occurs:

1. There is an overall increase in income.

2. It is discovered that there are health concerns when using cell phones. (There will be 2 graphs - one for each scenario.)

Part II

we will focus on the supply curve. Draw the supply curve for the A-Phone showing how it reflects on a graph if it becomes more expensive to produce cell phones as the input prices has gone up.

Part III

As the public's dependence on cell phones continues to grow, the cost of the phones may be decreasing, but the stronghold that telecommunication companies have on the public in regards to contracts and climbing fees is alarming.

Additionally, all cell phone companies charge about the same prices, and the consumers do not have much choice in substituting providers. Consumers appear to need some controls in this regard, and the government decides to step in and set a price ceiling on a monthly cell phone bill. The price ceiling is below the equilibrium price.

What are the effects of government intervention in the cell phone market?(What happen to the equilibrium price, quantity demanded and quantity supplied) Is this a good thing for consumers?

Objective:

• Utilize the tools of economics for decision making for a firm operating in a market economy
• Discuss the impact of current economic trends and realities on politics, the workplace and the quality of individual lives.

Reference no: EM13371563

Questions Cloud

In the globalizing economy of the late 20th and early 21st : in the globalizing economy of the late 20th and early 21st century liberalized trade has been sought by way of regional

1 what are the current values of the three main : 1. what are the current values of the three main macroeconomic indicators?2. why does it matter whether the tax rate

Question 1adiscuss the advantages and disadvantages of free : question 1adiscuss the advantages and disadvantages of free international trade.bassume that two countries are

Perfectly competitive constant-cost industry has a market : perfectly competitive constant-cost industry has a market demand curve p 50 - 17q.each firm has a u-shaped long-run

There are 2 brands of cell phones that are almost identical : there are 2 brands of cell phones that are almost identical except for some minor features the a-phone and the

Submit a short summary of your portfolio project case : submit a short summary of your portfolio project case studyus mortgage crisis and the troubled asset relief

Select one of the cases presented between pages 232-266 of : select one of the cases presented between pages 232-266 of luthans and doh 2012. the case options include each of the

Simple single-server queue has one line of waiting : simple single-server queue has one line of waiting customers and one server who wait on customers. suppose that

In the direct steelmaking reactor based on the reduction of : in the direct steelmaking reactor based on the reduction of an oxidizing foaming slag by char carbon particles and

User Account

All Pages