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

Characteristics of drivers - overtaking maneuvers, Characteristics of Drive...

Characteristics of Drivers - Overtaking Maneuvers Lunenfeld and Alexander (1990) consider the driving task to be a hierarchical process, with three levels: (1) Control,

How classics influenced the modern world, How Classics Influenced The Moder...

How Classics Influenced The Modern World: While people mention the roots of heritage and western culture, they frequently refer to classic Rome, Greece and Judaism. However, all t

Explain the social and religious differences in suicide, Problem 1: In ...

Problem 1: In the year 2000 an estimated 815 000 people died from suicide around the world. This represents an annual global mortality rate of about 14.5 per 100 000 population

Synthetic polyisoprene versus natural rubber, what are the most preferred i...

what are the most preferred in industries between synthetic polyisoprene and natural rubber?

Spcial science.., why did African American''s migrate TO united states?

why did African American''s migrate TO united states?

What is suicide counselling, Question 1: (a) What is suicide counsellin...

Question 1: (a) What is suicide counselling? (b) Explain using an example the relation between depression and suicide. (c) Identify and describe FIVE suicide risk factors

Old testament, Ask que5. Do you think Isaiah’s advice to Ahaz in the Syro-e...

Ask que5. Do you think Isaiah’s advice to Ahaz in the Syro-ephraimitic crisis was sound? Explainstion #Minimum 100 words accepted#

Goal of environmental management, Goal of Environmental management: Make s...

Goal of Environmental management: Make sure that development proceeds without compromising our environment. In order to accomplish this goal each of the several program areas issu

Discuss the gender issues in bereavement, Question: It is believed that...

Question: It is believed that the grief experience impacts all aspects of the being of an individual. Describe carefully any one of the following reactions which an individu

About saarc, basic information about saarc

basic information about saarc

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