Question
(a) You are a government economist analyzing the market for iPhones. Consider the following events below: i) Price of mobile phone batteries falls ii) iPhones
(a) You are a government economist analyzing the market for iPhones.
Consider the following events below:
i) Price of mobile phone batteries falls
ii) iPhones become less popular among consumers
iii) Prices of other mobile phone brands decrease
iv) iPhone sellers expect prices of iPhones to fall in future
v) New health evidence showing that prolonged usage of mobile phones leads to negative health effects
vi) More productive ways of making phones are found.
Discuss the effects of each of these events on the prices and quantity of iPhones produced.
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