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

Save catalogue to file, Implement the save catalogue to file menu option....

Implement the save catalogue to file menu option.  After selecting this option the user should be asked to specify the name of the save file.  All the catalogue data should be st

Give me liberty, The textbook states, “Prejudice by itself did not create A...

The textbook states, “Prejudice by itself did not create American slavery.” Examine the forces and events that led to slavery in North America, and the role that racial prejudice p

Bogus clients, Question: a) Explain the 10 warning signs which woul...

Question: a) Explain the 10 warning signs which would indicate that attraction feelings towards clients may be putting you or your services at risk. b) What precautions

Basic informations, i want to about basic informations about pakistani famo...

i want to about basic informations about pakistani famous mousques

Warfarin, is anybody anywhere using hirudin instead of warfarin?

is anybody anywhere using hirudin instead of warfarin?

Case study MIS, 1. Do you agree with the argument made by Nick Carr to supp...

1. Do you agree with the argument made by Nick Carr to support his position that IT no longer gives companies a competitive advantage? Why or why not?

World geography, what is the relationship between physical and human charac...

what is the relationship between physical and human characteristics of a place

Fundamentals of case management practice by nancy summers, 1. to a person d...

1. to a person drinking and taking tranquilizers: thats a dumb thing to do!"

#title., Weber could see the advantages of industrial capitalism, and he...

Weber could see the advantages of industrial capitalism, and he was optimistic about the future. but he thought it would never actually develop. but he thought workers wou

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