Microeconomics, Other Subject

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

Part I

Draw the demand curve for the A-Phone. Explain how the graph, price, and quantity demanded will change if the following occurs:

•There is an overall increase in income.
•There is an overall increase in income and people believe that the Pomegranate is now better than the A-Phone.
•The price of the A-Phone goes up when a flaw is found in the Pomegranate.
•A new type of walkie-talkie has an unlimited range and is basically free.
•It is discovered that there are health concerns when using cell phones.
•There is a baby boom.
•The price of the A-Phone and the Pomegranate both go up.
What happens to the supply of cell phones if the market price goes up?

Part II

Explain what happens to the price and quantity supplied and how it reflects on a graph if the following occurs:

•It becomes more expensive to produce cell phones.
•More cell phones are being produced with the same amount of inputs.
•Walkie talkies are popular because of the new technological change mentioned above.
•Another company starts producing cell phones, and now there are 3 producers in the market.
•People think the price of cell phones will go up in the future.
Part III

Draw a graph which shows the equilibrium price of cell phones. Explain what the graph is showing.

When the new manufacturer introduces the Robo cell phone to the market, how does that effect the equilibrium price if the Robo is basically the same as the other cell phones?

Part IV

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.

•What is the effect of government intervention in the cell phone market? Make sure that you use graphs to illustrate your point.
•Is this a good thing for consumers?
On the other hand, the government sees the increase in cell phone use as an opportunity to make some additional revenue, and it decides to tax service providers.

•Who is really paying the tax?
•Illustrate your conclusion on a graph.
•Do you think that there is a free market for cell phone users? Why or why not?

Related Discussions:- Microeconomics

Renaissance art and architecture, Renaissance Art and Architecture : Throug...

Renaissance Art and Architecture : Throughout the Italian Renaissance, art was everywhere. Patrons like Florence's Medici family sponsored projects small and large, and successful

Branding, examples of provincial brand

examples of provincial brand

Describe the anatomy of the thyroid gland, Describe the anatomy of the thyr...

Describe the anatomy of the thyroid gland: Mrs. Duarte is a 40 year old woman who has scheduled an appointment with her primary HCP to assess a lump that has developed on the

The historical evolution of operations management, apply the theory of hert...

apply the theory of hertzberg to the evolution of operations management

Write a note on the ethos of journalism, Question 1 Discuss the Working Jo...

Question 1 Discuss the Working Journalists (Fixation of Rates of Wages) Act, 1958. (Act mentions 8 points. There are 3 other subdivisions Question 2 Write a note on the ethos

Econometric assignment, choose an economic theory of your choice, quantify ...

choose an economic theory of your choice, quantify it, assign figures to it and then the regression process

Linear Convolution in DSP sums, how to slove linear convolution when limits...

how to slove linear convolution when limits are negative to positive .provide with example

Reflection of skills, Question Mary, 35 years now, has been inducing h...

Question Mary, 35 years now, has been inducing herself with drugs to change her state of thoughts and feeling since nearly two months now. She lost her husband in a accident a

Geography, can you help me with my homework please im in 7th grade and im h...

can you help me with my homework please im in 7th grade and im having a hard time with my homework

Legislative frameworks - ethical dilemmas, Choose one of the provided cas...

Choose one of the provided case studies; read the case study and explain the legislative frameworks which may be relevant to this scenario. Include in your discussion reference t

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd