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

Explain the underlying pathophysiology, Derek Smith, a 75 year old male, ha...

Derek Smith, a 75 year old male, has been admitted to the medical ward with pneumonia. He has been feeling generally unwell and coughing for the past two weeks. When you

Describe the basic components of tourism, 1. What is understand by measurem...

1. What is understand by measurement of tourism? Bring out the importance of tourist Statistics? List out the general problems of measurement. 2. Describe the factors influencin

System Analysis and Design, Your boss, the IT manager, was ready to explode...

Your boss, the IT manager, was ready to explode. "Why can''t we get our priorities straight," he fumed. "Here we go again, working on a low-value project, just because it''s a favo

Humanities, These essays should be a minimum of five paragraphs in length e...

These essays should be a minimum of five paragraphs in length each. They should contain a clear thesis statement in the first paragraph (an answer to the question!). Make sure your

Health Insurance, Health insurance in America is big business. Many insuran...

Health insurance in America is big business. Many insurance companies are experiencing record gains, yet benefiting from not-for-profit status. In Illinois, some of the largest

Inro to business, need help on some B2B questions and consumer? McDonald''s...

need help on some B2B questions and consumer? McDonald''s Big Mac? 14 pound of sugar

Transition leading to authentic leadership, Question 1: Although the Mi...

Question 1: Although the Ministry of Education as a public institution has shown "remarkable resilience to a succession of policy changes" (The World Bank), yet policy formulat

What self-care strategies could counsellors apply, Question 1: By refer...

Question 1: By referring to existing literature, discuss five events which might lead students to need the setting up of a school counselling unit at school. Support your an

Project, what is the difference between efforts and elapsed time

what is the difference between efforts and elapsed time

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