3. Consider the markets for smart phones, mobile apps and feature phone2 . We assume that each of these markets are in equilibrium. Suppose a technological discovery reduces the cost of making smart phones. (a) Draw the supply-and-demand diagram and show what happens to price, quantity, consumer surplus, and producer surplus in the market for smart phones. (b) Draw a supply-and-demand diagram to show what happens to price, quantity, consumer surplus, and producer surplus in the market for mobile apps. Comment briefly on the diagram. (c) Smart phones and Feature phone are substitutes. Use a supply-and-demand diagram to show what happens to price, quantity, consumer surplus, and producer surplus in the market for feature phones. (d) Does this analysis above help explain the surge in demand for software programmers? Briefly discuss. 4. Suppose the demand and supply curves for goose-down winter jackets in 2018 were given as: Demand: P=20005Q and Supply: P = 500 + 5Q