Question

• Think of a relevant example in your own life of how a change in the market (including information, preferences, technology, price of alternative goods, regulations, taxes, etc.) has shifted either the supply or demand of a good. How did this change affect the market equilibrium for that good or service? Explain.
• Next, find a relatively recent news article (within the past year) to support your finding (the news search feature in Google is helpful with this). If you cannot find an article specific to your example, you may find an article about another similar good or service.

Answer 1

ANSWER:

One of the good example is Blackberry smartphones. At the starting of the decade blackberry was the dominant force in the smartphone market. At one point of view, Blackberry had almost 50% share in the smartphone market of the USA and also 20% share in the globe. Now in our day to day life we can't see the blackberry consumers.

They failed to add new features compared to the competitors: The rise of the android and Iphone touchscreen technologies put blackberry in a disadvantage as they still had the QWERTY keypad phones. people's preference towards touch screen increased because it gives a larger screen size with the less space. The software of blackberry wasn't not that smooth as apple ios and android, eventhough blackberry introduced some touch screen phones their software failed miserably.

They focused on enterprise rather than consumers: Android and iphone made their phone affordable to a large segment of people and blackberry just focused on building their business on the corporate and IT world therefore, they failed to capture the emerging smartphone market.