Supply and Demand and Cell Phones

Damita Nix 1/15/2012 CTU Online ECON202-1201B Phase 1 Individual Project1 instructor Olanrewaju Abstract This paper will look for the world of two particular types of jail carrell telephone phones that ar identical with minor features. I will be demonstrating skills in victimisation the tools of economics for decision making for the bulletproof operating in the trade miserliness to include hand over and demand, elasticity of demand, consumer doings and utility maximization, and the costs of production two short-run and long-run. I will alike be demonstrating the ability to clearly bequest views in written and/or oral examination expression.On the web, I will research additional information about the A-Phone and the pomegranate. The chore below also requires me to draw represents of supply and demands increases and decreases. When the task is complete you will discombobulate learned about the demand contract of an A phone, a clear mind on what happens to the imp airment and total supplied, equilibrium, and outlet on political relation interventions with cell phones. act Cell Phones set out I watch the demand curve for the A-Phone. formulate how the graph, price, and quantity demandedwill change if the following occurs * in that location is an overall increase in income. in that location is an overall increase in income and throng believe that the Pomegranate is now divulge than the A-Phone. * The price of the A-Phone goes upwhen a speck is found in the Pomegranate. * A mod type of walkie-talkie has an unlimited wave and is basically reposition. * It is discovered that there are health concerns when using cell phones. * at that place is a baby boom. * The price of the A-Phone and the Pomegranate both go up. Price P1 P2 P3 consume Q1 Q2 Q3 Quantity What happens to the supply of cell phones if the market price goes up? Part IIExplain what happens to the price and quantity supplied and how it reflects on a graph if the follow ing occurs * It becomes more(prenominal) expensive to produce cell phones. * more than cell phones are being produced with the aforementioned(prenominal) amount of inputs. * Walkie talkies are popular because of the parvenue technological change mentioned above. * An new(prenominal) go with starts producing cell phones, and now there are3 producers in the market. * People moot the price of cell phones will go up in the future. PriceSupply P1 Q1 Quantity 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? &8212&8212&8212&8212- Part IV As the publics dependence on cell phones continues to grow, the cost of the phones may be decreasing, but the stronghold thattelecommunication companies mystify on the public in regards to contracts and rise fees is alar ming. Additionally, all cell phone companies recoil about the same prices, and the consumers do not have much choice in substituting providers.Consumers appear to need rough controls in this regard, and the government decides to step in. * What is the effect of government intervention in the cell phone market? Make confident(predicate) that you use graphs to illustrate your point. * Is this a correct thing for consumers? On the other hand, the government sees the increase in cell phone use as an opportunity to bring out some additional revenue, and it decides to tax improvementproviders. * Who is really paying the tax? * represent your conclusion on a graph. * Do you think that there is a free market for cell phone users? wherefore or why not? References