Read the article and answer quesion 3. If demand for cellphones is increasing so much, why aren't prices? Draw a freehand demand and supply graph to illustrate what you think may be happening in the market. 94CHAPTER 5APPL ICAT IONSO FDEMA NDA NDSUPPLYGoing WirelessThe mobile phone is bringing aboutchanges to society as profound as thoseintroduced by the automobile.-Timo Kopomaa, sociologist,Helsinki University of TechnologySome facts about cellphones as ofDecember 2000:•One in four Canadians has acellphone.• The number of users in Canadais increasing by approximately4700 per day.• In Finland, 70 per cent of thepopulation owns a cellphone, inBritain, 60 per cent, and in Japan,40 per cent.• By 2003, global sales of cell-phones are expected to triple.• The next generation of cell-phones will combine data stor-age, Internet access, and voiceand image communication.Source: Chris Wood, "The Cell in Your Future," Maclean's, 4December 2000, 34-40; Barry Came, "Wireless Nation,"Maclean's, 4 December 2000, 41-44.Chapter GoalsQUESTIONSBy the end of this chapter, you will be able to• understand, calculate, and apply a conceptknown as elasticity to consumers andsellers,1. Do you own a cellphone? If so, why? If not, do youplan to buy one in the future? Why or why not?2. How important are cellphones in our lives rightnow? Do you ever see them becoming a necessity?Explain.3. If demand for cellphones is increasing so much, whyaren't prices? Draw a freehand demand and supplygraph to illustrate what you think may be happeningin the market.• identify how governments interfere inmarkets, and explain whether or not itis beneficial,• understand theories of consumerbehaviour such as marginal utility andconsumer surplus,analyze and debate the issues of rentcontrols and minimum wages.4. Do you agree with the opinion in the quotation fromTimo Kopomaa? Explain.

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Read the article and answer quesion 3. If demand for cellphones is increasing so much, why aren't prices? Draw a freehand demand and supply graph to illustrate what you think may be happening in the market.

Read the article and answer quesion 3. If demand for cellphones is increasing so much, why aren't prices? Draw a freehand demand and supply graph to illustrate what you think may be happening in the market.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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