Suppose that there are two companies that produce mobile phones: Brand A and Brand B. Explain how each of the following events will affect the market for BrandA phones by using supply and demand diagrams (mention the changes in equilibrium price and quantity): a) Price of Brand B phones increased. b) Brand A's factory's production capacity dropped because of a shortage in raw materials supplies. c) Brand A has developed a new technology that allows to assemble the phone's components in a cheaper way.
Suppose that there are two companies that produce mobile phones: Brand A and Brand B. Explain how each of the following events will affect the market for BrandA phones by using supply and demand diagrams (mention the changes in equilibrium price and quantity): a) Price of Brand B phones increased. b) Brand A's factory's production capacity dropped because of a shortage in raw materials supplies. c) Brand A has developed a new technology that allows to assemble the phone's components in a cheaper way.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Suppose that there are two companies that produce mobile phones: Brand A and Brand B.
Explain how each of the following events will affect the market for Brand A phones by
using supply and demand diagrams (mention the changes in equilibrium price and quantity):
a) Price of Brand B phones increased.
b) Brand A's factory's production capacity dropped because of a shortage in raw
materials supplies.
c) Brand A has developed a new technology that allows to assemble the phone's
components in a cheaper way.
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