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

Organizational behaviour, 2. If you were one of the other foremen, what cou...

2. If you were one of the other foremen, what could you do to make Rajinder’s transition easier?

Business studies .., what are the disadvantages of using computer aided des...

what are the disadvantages of using computer aided design in a business

Explain what is media imperialism, Question 1: A "Development Organizat...

Question 1: A "Development Organization" invites you to be its development communication consultant to promote the diffusion of a new idea into your community. Discuss the ste

Measurement tools, Select a specific patient/patient group. Identify the cl...

Select a specific patient/patient group. Identify the clinical problems they may have. Identify an appropriate measurement tools (or more than one tool) that may be used in the ove

Types of sculpture, Types of Sculpture: Sculpture is an ancient art form, ...

Types of Sculpture: Sculpture is an ancient art form, with different types found throughout history created by artists from nearly every culture. This unique form of art results i

Design, how to design a website for a college or university?

how to design a website for a college or university?

Family life education, teacher experiences regarding role of school parent ...

teacher experiences regarding role of school parent and peers imparting family life education

Why machinery has to be provided with guards, Question 1: (a) (i) Brief...

Question 1: (a) (i) Briefly describe why machinery has to be provided with guards? (ii) What are the basic requirements for guards and safety devices to be effective? (

DDBL, DDBL is located first at .......... ?

DDBL is located first at .......... ?

Government, "The landmark abortion decision of Roe v. wade was?"

"The landmark abortion decision of Roe v. wade was?"

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