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

Modern cryptography systems: a hybrid approach, Modern Cryptography Systems...

Modern Cryptography Systems: A Hybrid Approach In fact, a mixture of both public key and traditional symmetric cryptography is used in current cryptographic systems. The motiva

Alternatives to digital currency, ALTERNATIVES Officially digital money...

ALTERNATIVES Officially digital money or electronic is a representation, or a system of credits and debits, used (but not restricted to this) to swap value, within a different

Hrm assigment, IMAGIN YOUR SELF AS A HR MANAGER OF TOUR OPERATING AGENCY FR...

IMAGIN YOUR SELF AS A HR MANAGER OF TOUR OPERATING AGENCY FROM MALDIVES. WHAT STEPS WOULD YOU CONSIDER WHILE RECRUTING NEW SALES FORCE FOR YOUR ORGANIZATION?

Mental health nursing, 1. Analyse the impact of mental illness on the indiv...

1. Analyse the impact of mental illness on the individual, their families and communities. Enabling outcomes You should be able to: a. Discuss the theoretical underpinning

Please check this small paragraph, To: The General hospitals From: Salma ...

To: The General hospitals From: Salma Umme, 7717 hough ave, Cleveland, oh-44103 Date: March 7, 2012 Subject: Some issues that I feel is important in my Nursing Area Throughout

securities market & portfolio management, present gold prices represented ...

present gold prices represented in bull & bear market trend

Healthcare, HOw much do you charge per 300 words?

HOw much do you charge per 300 words?

Interactive web, Interactive Web Web has a client/server structural...

Interactive Web Web has a client/server structural design, where a browser runs on the client such as Microsoft Explorer or Netscape and a Web server like Apache server run

Leadership, Ask questioThe initial investment in the project is estimated t...

Ask questioThe initial investment in the project is estimated to be $210,000 in year 0 of the project. Terra Nova Inc. requires a discount rate of 11%. It is anticipated project fu

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