The A-Phone and the Pomegranate

Feb 3rd, 2012
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MICRO Week 1 IP Assignment
There are 2 brands of cell phones that are almost identical except for some minor features: the A-Phone and the Pomegranate. Draw the demand curve for the A-Phone. Explain how the graph, price, and quantity demanded will change if there is an overall increase in income. It is discovered that there are health concerns when using cell phones. What happens to the supply of cell phones if the market price goes up? Explain what happens to the price and quantity supplied and how it reflects on a graph if it becomes more expensive to produce cell phones.

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