Phase 1 Individual Project1
This paper will explore the world of two particular types of cell phones that are identical with minor features. I will be demonstrating skills in using the tools of economics for decision making for the firm operating in the market economy to include supply and demand, elasticity of demand, consumer behavior and utility maximization, and the costs of production both short-run and long-run. I will also be demonstrating the ability to clearly present views in written and/or oral expression. On the web, I will research additional information about the A-Phone and the Pomegranate. The task below also requires me to draw graphs of supply and demands increases and decreases. When the task is complete you will have learned about the demand curve of an A phone, a clear understanding on what happens to the price and quantity supplied, equilibrium, and effects on government interventions with cell phones.
Title: Cell Phones
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.
Q1 Q2 Q3 Quantity
What happens to the supply of cell phones if the market price goes up?
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...