The graph shows the demand curve for smartphones. The market price of a smartphone is $200. On the demand curve draw a point to show the maximum price that someone is willing to pay for the 1 millionth smartphone. Label your point 1. Draw a point on the curve to show the value of the 2 millionth smartphone. Label your point 2. 100 500- 400- 300- 200- 100+ Price (dollars per smartphone) Quantity (millions of smartphones per year) D 5

The graph shows the demand curve for smartphones. The market price of a smartphone is $200. On the demand curve draw a point to show the maximum price that someone is willing to pay for the 1 millionth smartphone. Label your point 1. Draw a point on the curve to show the value of the 2 millionth smartphone. Label your point 2. 100 500- 400- 300- 200- 100+ Price (dollars per smartphone) Quantity (millions of smartphones per year) D 5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The graph shows the demand curve for
smartphones. The market price of a
smartphone is $200. On the demand curve,
draw a point to show the maximum price
that someone is willing to pay for the 1
millionth smartphone. Label your point 1.
Draw a point on the curve to show the
value of the 2 millionth smartphone.
Label your point 2.
500-
400-
300-
200-
100-
Price (dollars per smartphone)
Quantity (millions of smartphones per year)

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