Question

In: Economics

The mobile phone was invented in 1973, and during the first 20 years of its life,...

The mobile phone was invented in 1973, and during the first 20 years of its life, few people used one, except as a car phone. But during the 25 years, the use of mobile phones increased dramatically and the price of mobile phone service fell.

  1. Are the substitutes for mobile phones? If so, provide an example.



  1. Do mobile phones have complements? If so provide an example.



  1. What increased the demand for mobile phones? Provide examples.



  1. What increased the quantity demanded for mobile phones? Illustrate the effect by using the demand curve for mobile phones.

Solutions

Expert Solution

a) one substitute for mobile phones is nothing but computer communication and this is because of the fact that both can be used interchangeably to each other as a result of which is the price of computer communication decreases then the demand for mobile phone decreases and vice versa

(b) one complement for mobile phones is nothing but the sim card or the network carrier that is used to make phone calls and this is because if the price of SIM card increases then it is difficult to use phones as it becomes more costly and the demand for mobile phone decrease and that is the reason why they are complements

(c) the cost of making landline calls and cost of writing letters very high and continuously is increasing and that is the reason why the demand for mobile phones rupees because people would shift from more costly methods of communication tool is costing methods as a result of which the demand curve for mobile phones shifted to the right

(d) when you say about the demand curve you have to understand the law of demand that price is inversely proportional to that of quantity demanded and that is the reason why only price in alter the quantity demanded where an increase in price decreases quantity demanded and vice versa.

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

"Micromax Corporation a company assembling and Marketing Mobile phone, after successful operations in India during the...
"Micromax Corporation a company assembling and Marketing Mobile phone, after successful operations in India during the last eight years, now plans to enter consumer electronic (say TV) hoping to create similar success stories.The company has approached you to become the CEO of this new Division. Above you is the Board of Directors and below you are the whole set of employees. How will you go about in this assignment using the concept of Leadership and Negotiation. Need answers on all...
PeCo sells a single type of mobile phone screen protector. The annual demand for the its...
PeCo sells a single type of mobile phone screen protector. The annual demand for the its screen protectors is 50,000 units and demand seems to be continuous and uniform throughout the year. They currently sub-contract a local manufacturer to produce the screen protector for them at a cost of $3 per unit. The fixed cost associated with each delivery of screen protectors is estimated at $1,200 and careful analysis of quality assurance data has shown that a product held for...
A major smartphone manufacturer is launching the newest version of its mobile phone. The company has...
A major smartphone manufacturer is launching the newest version of its mobile phone. The company has media advertising planned already, but it is considering complementing it with a public relations (PR) campaign. Discuss the target audience, the objectives, and the advantages of a PR campaign? 600 words A major smartphone manufacturer is launching the newest version of its mobile phone. The company has media advertising planned already, but it is considering complementing it with a public relations (PR) campaign. Discuss...
A company had stock outstanding as follows during each of its first three years of operations:...
A company had stock outstanding as follows during each of its first three years of operations: 3,000 shares of 10%, $100 par, cumulative preferred stock and 51,000 shares of $10 par common stock. The amounts distributed as dividends are presented below. Determine the total and per-share dividends for each class of stock for each year by completing the schedule. If necessary, round dividends per share to the nearest cent. If your answer is zero, please enter "0".   PreferredCommon YearDividendsTotalPer ShareTotalPer...
A company had stock outstanding as follows during each of its first three years of operations:...
A company had stock outstanding as follows during each of its first three years of operations: 2,000 shares of 9%, $100 par, cumulative preferred stock and 36,000 shares of $10 par common stock. The amounts distributed as dividends are presented below. Determine the total and per-share dividends for each class of stock for each year by completing the schedule. Round dividends per share to the nearest cent. Enter "0" if no dividends are paid. Preferred Common Year Dividends Total Per...
A company had stock outstanding as follows during each of its first three years of operations:...
A company had stock outstanding as follows during each of its first three years of operations: 4,000 shares of 8%, $100 par, cumulative preferred stock and 34,000 shares of $10 par common stock. The amounts distributed as dividends are presented below. Determine the total and per-share dividends for each class of stock for each year by completing the schedule. Round dividends per share to the nearest cent. Enter "0" if no dividends are paid. Preferred Common Year Dividends Total Per...
The following events occur for The Underwood Corporation during 2021 and 2022, its first two years...
The following events occur for The Underwood Corporation during 2021 and 2022, its first two years of operations. June 12, 2021 Provide services to customers on account for $38,600. September 17, 2021 Receive $23,000 from customers on account. December 31, 2021 Estimate that 45% of accounts receivable at the end of the year will not be received. March 4, 2022 Provide services to customers on account for $53,600. May 20, 2022 Receive $10,000 from customers for services provided in 2021....
The following events occur for The Underwood Corporation during 2018 and 2019, its first two years...
The following events occur for The Underwood Corporation during 2018 and 2019, its first two years of operations. June 12, 2018 Provide services to customers on account for $38,000. September 17, 2018 Receive $22,500 from customers on account. December 31, 2018 Estimate that 45% of accounts receivable at the end of the year will not be received. March 4, 2019 Provide services to customers on account for $53,000. May 20, 2019 Receive $10,000 from customers for services provided in 2018....
The following events occur for The Underwood Corporation during 2018 and 2019, its first two years...
The following events occur for The Underwood Corporation during 2018 and 2019, its first two years of operations.       June 12, 2018   Provide services to customers on account for $35,000. September 17, 2018   Receive $20,000 from customers on account. December 31, 2018   Estimate that 40% of accounts receivable at the end of the year will not be received. March 4, 2019   Provide services to customers on account for $50,000. May 20, 2019   Receive $10,000 from customers for services provided...
The following events occur for The Underwood Corporation during 2021 and 2022, its first two years...
The following events occur for The Underwood Corporation during 2021 and 2022, its first two years of operations. June 12, 2021 Provide services to customers on account for $35,000. September 17, 2021 Receive $20,000 from customers on account. December 31, 2021 Estimate that 40% of accounts receivable at the end of the year will not be received. March 4, 2022 Provide services to customers on account for $50,000. May 20, 2022 Receive $10,000 from customers for services provided in 2021....
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT