2. Draw a supply and demand curve for theiPhone 11. Apple announces that thePiPhone 12 is coming out in 1 year, whathappens to the supply or demand foriPhone 11s? Why?

Answered: 2. Draw a supply and demand curve for…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. Draw a supply and demand curve for the
iPhone 11. Apple announces that the
P
iPhone 12 is coming out in 1 year, what
happens to the supply or demand for
iPhone 11s? Why?

Expert Solution

Step 1

Demand for a commodity is the desire backed by the ability and willingness to pay for the commodity. There is an Inverse relation between the price and demand of a commodity. When price increases, demanded decreases and vice versa.

Supply represents a relation between the price of a commodity and the willingness of the producer to supply goods and services in the market at the given price. There is a Direct relation between the price of and supply of a commodity. When price increases supply increases and vice versa.

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