User Account

All Pages

Intro to economic thinking, Microeconomics

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:- Intro to economic thinking

Agriculture development, Visit to a village panchayat for agriculture base...

Visit to a village panchayat for agriculture based project

#titlefree trade and protectionsm .., why is international trade important ...

why is international trade important for south africa

Future worth, I need help finding the future worth given the initial invest...

I need help finding the future worth given the initial investment, MARR, and profit over a period of time.

State the example of price and price level, State the example of price and ...

State the example of price and price level Create a basket which contains all the goods sold by a specific store on a specific day. Price of this basket is then a price level -

H.W. help, Suppose the price of printing paper for digital cameras has rece...

Suppose the price of printing paper for digital cameras has recently risen by 10 percent due to an increase in the cost of materials used in the finish for the paper. As a result,

Exchange rate, if a country is managing its exchange rate what will do to c...

if a country is managing its exchange rate what will do to counteract the effect of stock market bubble in this country? explain what central bank will do and show in supply and de

Indirect utility, what is the indirect utility/

what is the indirect utility/

What is the difference between economics and business, What is the differen...

What is the difference between economics and business?  Economics is the study of how we, the people, engage ourselves in production, distribution and consumption of goods and

Domestic development agenda, Problem : (a) Using examples of Least Deve...

Problem : (a) Using examples of Least Developed Countries, explain the: (i) causes of market failures; and (ii) consequences of market failures (b) Describe the common

Elasticity, why is elasticity important for beachfronf properties

why is elasticity important for beachfronf properties

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd