THIS IS FOR MATHEMATICAL ECONOMIC CLASS Question (2):The market for disposable cell phones: Q = 2300 – 16p and Q = 1850 + 14p.Find the equilibrium price and quantity.Suppose that a new technology has emerged that will enable firms to mass produce the cell phones at a reduced cost. Which curve will be affected and what will be the general outcome?Going back to question (b), if the new equilibrium price of a disposable cell phone is $11.25, how many disposable cell phones will be demanded by consumers? Derive the new function based on your analysis.

The supply shows the relationship between Price and the quantity supplied which is a direct and…

Answered: THIS IS FOR MATHEMATICAL ECONOMIC CLASS…

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter3: Supply And Demand: Theory

Section: Chapter Questions

Problem 8WNG

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THIS IS FOR MATHEMATICAL ECONOMIC CLASS

Question (2):

The market for disposable cell phones: Q = 2300 – 16p and Q = 1850 + 14p.

Find the equilibrium price and quantity.
Suppose that a new technology has emerged that will enable firms to mass produce the cell phones at a reduced cost. Which curve will be affected and what will be the general outcome?
Going back to question (b), if the new equilibrium price of a disposable cell phone is $11.25, how many disposable cell phones will be demanded by consumers? Derive the new function based on your analysis.

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Suppose that more consumers prefer the disposable cell phone over the smart phone because the disposable cell phone is more durable than the smart phone. This latest news comes after the fact that firms that manufacture disposable cell phones have the latest technology integrated into their production facilities. What will be the market effect?
Going back to question (d), suppose that the price of a disposable cell phone is now set at $11.75. How many disposable cell phones will be demanded by consumers? Whichever curve you’ve determined should be shifted, derive the new function.

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